Last year, Phillips Company produced 300,000 units and sold 280,000 units. Beginning inventory was zero. During the period, the following costs were incurred: Indirect labor (variable) $900,000 Indirect materials (variable) 600,000 Other variable manufacturing overhead 1,500,000 Fixed manufacturing overhead 2,400,000 Fixed administrative expenses 800,000 Fixed selling expenses 450,000. Variable selling expenses, per unit 40 Direct labor, per unit 50 Direct materials, per unit 25 Required: A. Compute the dollar amount of ending inventory using the Absorption costing. B. Compute the dollar amount of ending inventory using the Variable costing.