The Dark Corporation just completed its first year of operations. Planned and actual production equaled 15,500 units, and sales totaled 14,900 units at $60 per unit. Cost data for the year are as follows:

Direct materials (per unit) $ 15.00

Direct labor $ 62,000

Variable manufacturing overhead $ 77,500

Fixed manufacturing overhead $ 263,500

Selling & administrative costs:

Variable (per unit) $ 6.00

Fixed $ 100,000

REQUIRED: Please answer the following questions.

Compute the companys total cost for the year, assuming that variable manufacturing costs are driven by the number of units produced and that variable selling and administrative costs are driven by the number of units sold.

How much of this cost would be held in year-end inventory under a) absorption costing and b) variable costing? Please show your work.

How much of the companys total cost for the year would be included as an expense on the income statement under a) absorption costing and b) variable costing? Please show your work.