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

Variable costs per unit:

Production $ $33$

Selling and administrative $ $12$

Fixed costs per year:

Production $$166,110$

Selling and administrative $$147,840$

Last year, $7,910$ units were produced and $7,810$ 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.

$$7,810$ greater than under absorption costing.

$$7,810$ less than under absorption costing.

$$2,100$ less than under absorption costing.