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

Variable costs per unit:
Production	$ 35
Selling and administrative	$ 15
Fixed costs per year:
Production	$120,400
Selling and administrative	$101,140

Last year, 6,020 units were produced and 5,920 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:

• the same as absorption costing.

• $5,920 greater than under absorption costing.

• $5,920 less than under absorption costing.

• $2,000 less than under absorption costing.