During the most recent year, B & O Cafe had the following data associated with the items it makes:
Units in beginning inventory ...........0
Units produced ..............17,000
Units sold ($200 per unit) ..........14,000
Variable costs per unit:
Direct materials ...............$35
Direct labor ...............$65
Variable overhead ..............$30
Fixed costs:
Fixed manufacturing overhead per unit produced..$20
Fixed selling and administrative expense .....$200,000

Required:
1. How many units are in ending inventory?
2. Using absorption costing, calculate the per-unit product cost. What is the value of ending inventory?
3. Using variable costing, calculate the per-unit product cost. What is the value of ending inventory?
4. Calculate operating income statement using absorption costing.
5. Calculate operating income statement using variable costing.