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A company produces a single product. Variable production costs are $12.2 per unit and variable selling and administrative expenses are $3.2 per unit. Fixed manufacturing overhead totals $38,000 and fixed selling and administration expenses total $42,000. Assuming a beginning inventory of zero, production of 4,200 units and sales of 3,700 units, the dollar value of the ending inventory under variable costing would be:
$6,100
$10,600
$7,700
$4,500
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