The following information is available for Shalom Company for its first year of operations:

UNITS

Produced 15,000

Sold 12,000

COSTS

Direct materials 6 per unit

Direct labor 10 per unit

Manufacturing overhead 2 per unit

Manufacturing overhead 180,000 per month

Sales price 75 per unit

Net income (AC) 188,000

Provide answers to the following items:

ABSORPTION COSTING

(1) What is the cost per unit?30

(2) What is the gross profit margin ratio?60%

(3) What is the total Selling and Administrative Expense during the year?352,000

(4) What amount shall be reflected as cost of Shalom Company's ending inventory?90,000 VARIABLE COSTING

(5) What is the cost per unit?18 (6) What is the contribution margin ratio?60%]

(7) What is the net income?152,000

(8) If this costing will be used, what would Shalom Company show as value of ending inventory?54,000