Ryan Pty Ltd produces and sells a single product and uses predetermined overhead rates based on normal capacity to apply overhead. At 1 July 2014 it had a finished goods inventory of 20,000 units. Management would like a comparison with direct costing so as to be able to evaluate its variable costs more easily. Beginning inventory had the same unit cost as inventory produced during the year.

The company annual record shows:	Units
Normal Capacity	96,000
Production (actual)	100,000
Sales (actual)	90,000
Budgeted Costs	$
Fixed Factory Overhead	264,000
Variable Factory Overhead	182,400
Actual Selling Price Per Unit	22.00
Actual Variable Costs Per Unit
- Direct Material	5.00
- Direct Labour	5.00
- Factory Overhead	2.00
- Selling and Administration Expenses	3.00
Actual Fixed Costs in Total
- Factory Overhead	300,000
- Selling and Administrative Expense	80,000

Required:

Unit cost to value closing inventory under both Direct and Absorption Costing.

Income Statement for year ended 30 June 2015 using Absorption Costing.

Income Statement for year ended 30 June 2015 using Direct Costing.

Reconcile the Net Profits derived under both methods

How the product costs is treated differently in Direct & Absorption costing?