Valyn Corporation employs an absorption costing system for internal reporting purposes; however, the company is considering using variable costing. Data regarding Valyn's planned and actual operations for the calendar year are presented below.

Planned    Actual

Activity   Activity

Beginning finished goods inventory         35,000   35,000

Sales                                      140,000  125,000

Production                                 140,000  130,000

Planned     Planned      Actual

                                             Costs       Costs      Incurred

Per Unit      Total       Costs

Direct materials                             $12.00   $1,680,000  $1,560,000

Direct labor                                  9.00      1,260,000    1,170,000

Variable manufacturing overhead            4.00        560,000      520,000

Fixed manufacturing overhead               5.00        700,000      715,000

Variable selling expenses                     8.00     1,120,000    1,000,000

Fixed selling expenses                        7.00       980,000      980,000

Variable administrative expenses             2.00       280,000      250,000

Fixed administrative expenses                3.00       420,000      425,000

Total                                        $50.00   $7,000,000  $6,620,000

The planned per unit cost figures shown in the above schedule were based on Valyn producing and selling 140,000 units. Valyn uses a predetermined manufacturing overhead rate for applying manufacturing overhead to its product; thus, a combined manufacturing overhead rate of $9.00 per unit was employed for absorption costing purposes. Any over- or underapplied manufacturing overhead is closed to the Cost of Goods Sold account at the end of the reporting year.

The beginning finished goods inventory for absorption costing purposes was valued at the previous year's planned unit manufacturing cost, which was the same as the current year's planned unit manufacturing cost. There are no work-in-process inventories at either the beginning or the end of the year. The planned and actual unit selling price for the current year was $70.00 per unit.

The value of Valyn Corporation's actual ending finished goods inventory on the absorption costing basis was

A. $1,220,000

B. $900,000

C. $1,350,000

D. $1,200,000