The following information pertains to Chacon Inc. for last year:

Beginning inventory in units 5,000

Units produced 20,000

Units sold 23,700

Costs per unit:

Direct Materials $8,00

Direct labour $4,00

Variable overhead $1.50

Fixed overhead* $4.15

Variable selling expenses $3.00

Fixed selling and administrative expenses $24,300

*Fixed overhead totals $83,000 per year.

Required:

1. Calculate the cost of one unit of product under absorption costing.

2. Calculate the cost of one unit of product under variable costing.

3. How many units are in ending inventory?

4. Calculate the cost of ending inventory under absorption costing.

5. Calculate the cost of ending inventory under variable costing.