D2L Grades - ST X D2L Homepage X D2L Quiz List - I X D2L Week 7 - Fo X D2L Week 7 - Jo X D2L Homepage X Question 18 X Q ACCT2230 X Dashboard X G Mark Calcul x + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddle.. Update : Post-Class Quiz - Chapter 8 i Saved Help Save & Exit Submit Sparn Limited incurs the following costs to produce and sell a single product: 18 Variable costs per unit: Direct materials $ 39 Direct labour 9 Variable manufacturing overhead UT DU Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead 377 , 300 Fixed selling and administrative expenses 511 , 500 During the last year, 53,900 units were produced and 34,100 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $343,200 for the 6,600 unsold units. Required: 1-a. Is the company using absorption costing or variable costing to cost units in the Finished Goods Inventory account? O Absorption costing O Variable costing 1-b. Show computations to support your answer. Variable Absorption Costing Costing Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Total cost, 6,600 units Mc Graw HillD2L Grades - ST X D2L Homepage X D2L Quiz List - I X D2L Week 7 - Fo X D2L Week 7 - Jo X D21 Homepage X Question 18 X Q ACCT2230 X Dashboard X G Mark Calcul x + C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddle.. d Update : Post-Class Quiz - Chapter 8 i Saved Help Save & Exit Submit Total cost, 6,600 units 18 2. Assume that the company wishes to prepare financial statements for the year to issue to its shareholders. a. Is the $343,200 figure for finished goods inventory the correct amount to use on these statements for external reporting purposes? O Yes O No b. At what dollar amount should the 6,600 units be carried in inventory for external reporting purposes? nventory value for external reporting purposes 18- Mc Graw Hill