A Company Has the Following Information for the Current Month

A company has the following information for the current month of operations: $\begin{array}{ll}\text { Raw materials used } & \$ 37,500 \\\text { Sales }(\$ 97.50 \text { p er unit) } & \$ 117,000 \\\text { Direct labor } & \$ 63,000 \\\text { Variable factory overhead } & \$ 25,500 \\\text { Fixed factory overhead } & \text { unknown }\\\text { Variable s elling and administrative } & \$ 4,500 \\\text { Fixed selling and adminis trative } & \$ 7,500 \\\text { Gross profit } & \$ 45,000 \\\text { Contribution margin } & \text { unknown }\end{array}$

$\begin{array}{lll}\text { Inventories: } & \text { Beginning } & \text { Ending } \\\text { Raw materials } & 0 & \$ 10500 \\\text { WIP } & 0 & \text { none } \\\text { Finished goods } & 0 & 1,200 \text { units }\end{array}$ The ending inventory under variable costing is:

A) $126,000
B) $144,000
C) $63,000
D) $72,000