A building contractor started and finished a 20-unit condominium complex during the past year. The direct costs per unit were $100,000, and the indirect costs per unit were $50,000. The indirect costs are manufacturing overhead, and are considered product costs. By the end of the year, the contractor had sold 12 units for $200,000 apiece. The contractor had additional indirect expenses of $500,000 that were considered period expenses.

a.What is the profit of the building contractor for the year?

b.What is the contractor's ending inventory?

c.What is the profit of the contractor if all indirect costs are considered period expenses?