$3.$ Nader, Inc. produces e$-$readers that it sells for $$80$ each. Costs involved in production

are:

Direct material $$11$ per unit

Direct labor $15$ per unit

Variable manufacturing overhead $12$ per unit

Fixed manufacturing overhead per year $$448,000$

In addition, the company has selling and administrative costs:

Fixed selling costs per year $$175,000$

Fixed administrative costs per year $75,000$

Variable selling and administrative costs per year $$6$ per unit

During the year, Nader produced $28,000$ readers and sold $29,400.$ Beginning inventory

totaled $1,800$ units. Assume the same unit costs in all years. What is the value of ending

inventory using variable costing?