Belanna Industries began operations on January 1. The company sells a single product for $7 per unit. During the year, 50,000 units were produced and 45,000 units were sold. There was no work-in-process inventory at December 31.

Budgeted and actual costs for the year were as follows:

	Fixed Costs	Variable Costs
Direct materials	-0-	$1.40 per unit produced
Direct labor	-0-	$1.70 per unit produced
Manufacturing overhead	$80,000	$0.60 per unit produced
Selling and administrative	$35,000	$0.50 per unit sold
expenses

1) What would Belanna's product cost per unit under variable costing be?

2) What would Belanna's product cost per unit under absorption costing be?

3) What would Belanna's cost of ending finished goods inventory under absorption costing be?