In the first year of business, Sky Corp. produced and sold 10,000 units for $100 per unit, and incurred the following costs.

	direct material	300,000
	direct labor	160,000
	Variable MOH	120,000
	Fixed MOH	100,000
	Variable Selling	175,000
	Fixed Selling	65,000

Calculate Skys NOI and cost of inventory under full absorption and variable costing if in the coming year the selling price remains constant, it produces 10,000 units, but only sells 9,000 units.

(a) The unit cost of ending inventory on an absorption cost balance sheet: _____________

(b) The operating income using absorption costing: _____________ (c) The operating income using variable costing: _____________

Show how to calculate selling and Admin expenses