Problem - KCO Corporation manufactures a single product. During the month of July, 10,000 units were sold for $900, while 8,000 units were produced. Their July variable costing income statement showed the following expenses:
- Variable Cost of Goods Sold: $1,800,000
- Variable Selling and Administrative: $540,000
- Fixed Manufacturing: $1,440,000
- Fixed Selling and Administrative: $450,000
If July 1 inventory was 2,300 units, what is the value of the July 31 finished goods inventory under absorption costing?