1) Silver Rex Inc. has provided the following data for the year 2015:

direct materials	$10	per unit
direct labor	$15	per unit
variable manufaturing overhead	$20	per unit
fixed manucaturing overhead	$25,000	per year
fixed selling and administrative costs	$15,000	per year
sale price	$75	per unit
beginning inventory	500	units
units produced	5,000	units
units sold	4,500	units

Requirements:

a) what is silver rex's product cost under absorption costing and variable costing?

b) prepare income statements for Silver rex using absoption costing and variable costing.

c) calculate the balance in finished goods inventory using absorption costing and variable costing. assume that the production and prices where the same in the previous year.