Costing Methods and Inventory Valuation

The following information is available for Keller Corporation's new product line:

Selling price per unit	$15
Variable manufacturing costs per unit of production	$8
Total annual fixed manufacturing costs	$25,000
Variable administrative costs per unit of production	$3
Total annual fixed selling and administrative expenses	$15,000

There was no inventory at the beginning of the year. During the year 12,500 units were produced and 10,000 units were sold.

Required:

(a) Determine the cost of ending inventory, assuming Keller uses variable costing.

(b) Determine the cost of ending inventory, assuming Keller uses absorpion costing.

A step by step on how to calculate cost of ending inventory and the differences between the two methods would be super appreciated!