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Eastwood Company has the given information for preceding year.

Selling price                                                             $150 per unit
Variable production costs                                        $40 per unit produced
Variable selling and admin. Expenses                     $16 per unit sold
Fixed production costs                                             $200,000
Fixed selling and admin. Expenses                          $140,000
Units produced                                                       10,000 units
Units sold                                                                8,000 units

There were no beginning inventories.

a. Determine the ending inventory for Eastwood by using the absorption costing method?

b. Determine the cost of ending inventory for Eastwood by using the variable costing method?

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