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

Variable costs per unit:
Production	$	35
Selling and administrative	$	17
Fixed costs per year:
Production	$	157,080
Selling and administrative	$	128,810

Last year, 7,140 units were produced and 6,940 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

$4,400 less than under absorption costing.

$6,940 less than under absorption costing.

$6,940 greater than under absorption costing.

the same as absorption costing.