A business operates at 100% of capacity during its first month and incurs the following costs:
| Production costs (20,000 units): |
|
|
| Direct materials |
$180,000
|
|
| Direct labor |
240,000
|
|
| Variable factory overhead |
280,000
|
|
| Fixed factory overhead |
100,000
|
$800,000
|
| |
|
|
| Operating expenses: |
|
|
| Variable operating expenses |
$130,000
|
|
| Fixed operating expenses |
50,000
|
180,000
|
If 1,600 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?