Lenat’s contribution income statement utilizing variable costing appears below:

Lenat Company

Income Statement

For the year ended December 31, 2010

Sales ($28/unit) $1,120,000

Less variable costs:

Cost of goods sold 560,000

Selling & administrative costs 96,000 656,000

Contribution margin 464,000

Less fixed costs:

Manufacturing overhead 80,000

Selling & administrative costs 90,000 170,000

Profit $294,000

Lenat Company produced 50,000 units during the year. Variable costs per unit and fixed production costs have remained constant the entire year. There were no beginning inventories. How much is the dollar value of the ending inventory using full costing?

(Points : 2)