The Southern Corporation manufactures a single product and has the following cost structure:

Variable costs per unit:
Production	$	33
Selling and administrative	$	16
Fixed costs per year:
Production	$	130,830
Selling and administrative	$	107,280

Last year, 6,230 units were produced and 6,030 units were sold. There was no beginning inventory.

The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

Multiple Choice

• the same as absorption costing.

• $6,030 greater than under absorption costing.

• $6,030 less than under absorption costing.

• $4,200 less than under absorption costing.