1.) Compute the total cost of finished goods inventory using variable costing and absorption costing? Total Cost in: Variable Costing: $_____ Absorption Costing: $_____ Sierra Company incurs the following costs to produce and sell a single product. Variable costs per unit: Direct Materials: $9 Direct Labor: $10 Variable Manufacturing overhead: $5 Variable selling and administrative expenses: $3 Fixed costs per year: Fixed manufacturing overhead: $150,000 Fixed selling and administrative expenses: $400,000 During the last year, 25,000 units were produced and 22,000 units were sold. The Finished Goods inventory account at the end of the year shows a balance of $72,000 for the 3,000 unsold units