Griffiths Industries began operations on January 1. The company sells a single product for $60 per unit. During the year, 9,000 units were produced and 8,600 units were sold. There was no work-in-process inventory at December 31.

The company uses an actual cost system for product costing, and actual costs for the year were as follows:

Variable Costs

Direct materials .................$11.00 per unit produced

Direct labor .................... $5.00 per unit produced

Manufacturing overhead ..............$7.00 per unit produced

Selling and administrative expenses ......$3.00 per unit sold

Fixed costs:

Manufacturing overhead .................$100,000

Selling and administrative expenses ...........$150,000

Required:

a) Determine the cost per unit of finished goods inventory using absorption costing.

b) Determine the cost per unit of finished goods inventory using variable costing.

c) Determine the total finished goods inventory cost at December 31 using absorption costing.

d) Determine the total finished goods inventory cost at December 31 using variable costing.

e) Prepare an absorption-costing income statement.

f) Prepare a variable-costing income statement.