Be sure to show calculations

Envelope Company had the following information during the previous year for one of its product lines:

• Sales price per unit: $450
• Units in beginning inventory: 0
• Units started during the year: 35,000
• Units sold: 28,000

Variable costs per unit:

• Direct materials: $70
• Direct labor: $180
• Variable overhead costs: $50

Fixed costs:

• Fixed overhead per unit: $30
• General and administrative: $1,000,000

To Do

1. Calculate the ending inventory value and MAKE an income statement using absorption costing.
2. Calculate the ending inventory value and MAKE an income statement using variable costing.