Adelphia Corporation, which uses absorption costing, just completed its first year of operations. Planned and actual production equaled 20,000 units, and sales totaled 18,000 units at $151 per unit. Cost data for the year are as follows:

Direct material (per unit)	$	30
Conversion cost:
Direct labor		900,000
Variable manufacturing overhead		760,000
Fixed manufacturing overhead		900,000
Selling and administrative costs:
Variable (per unit)		32
Fixed		357,300

Required: 1. Compute the company's total cost for the year assuming that variable manufacturing costs are driven by the number of units produced, and variable selling and administrative costs are driven by the number of units sold. Total cost 2. How much of this cost would be held in year-end inventory under (a) absorption costing and (b) variable costing? Cost of year- end inventory Absorption costing Variable costing 3. How much of the company's total cost for the year would be included as an expense on the period's income statement under (a) absorption costing and (b) variable costing? Expense Absorption costing Variable costing