Amcor, Inc, produces and sells a single product. The following costs relate to its production and sale: During the last year, 30,000 units were produced and 26,000 units were sold. The Finished Goods inventory account at the end of the year shows a balance of $68,000 for the 4,000 unsold units Required: 1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer. ANSWER: The company is using costing. 2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders a. Is the $68,000 figure for Finished Goods inventory the correct figure to use on these statements for external reporting purposes? Explain. ANSWER: The $68,000 is the correct or incorrect amount. (circle correct or incorrect) Explain why the $68,000 is correct or incorrect. b. At what dollar amount should the 4,000 units be carried in inventory for external reporting purposes