Assume that the company wishes to prepare this year's financial statements for its stockholders. What balance should be reported in the Finished Goods inventory account for external reporting purposes? Sierra Company incurs the following costs to produce and sell its only product. During this year, 29,500 units were produced and 25,250 units were sold. The Finished Goods inventory account at the end of this year shows a balance of $106,250 for the 4,250 unsold units. Required: 1-a. Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption costing 1-b. Does it appear that the company is using variable costing or absorption costing to assign costs to the 4,250 units in its Finished Goods inventory? 2. Assume that the company wishes to prepare this year's financial statements for its stockholders. a. Is Finished Goods inventory of $106,250 the correct amount to include on the balance sheet for external reporting purposes? b. What balance should be reported in the Finished Goods inventory account for external reporting purposes? Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption costing. (Round intermediate calculation to the nearest dollar amount.)