The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $9,000 of direct materials.

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,000 units): Direct materials $181,000 Direct labor 235,000 Variable factory overhead 258,500 Fixed factory overhead 95,500 $770,000 Operating expenses: Variable operating expenses $128,700 Fixed operating expenses 46,900 175,600 If 2,000 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? Oa. $81,053 Ob. $84,547 Oc. $99,537 Od. $71,020