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Sierra Company incurs the following costs to produce and sell its only product. he Finished Goods inventory account at the end of this During this year, 28,750 units were produced and 25,500 urms year shows a balance of $71,500 for the 3,250 unsold units. Required: 1-a. Calculate this year's ending balance in Finished Goods inventory two ways-using varlable costing and using absorption costing. 1.b. Does it appeat that the company is using variable costing or absorption costing to assign costs to the 3,250 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 $71,500 the correct amount to include on the bolance sheet for external reporting purposes? b. What balance should be reported in the Finished Goods inventory account for external reporting purposes? Complete this question by entering your answers in the tabs belov Calculate this year's ending balance in Finished Goods inventory two wayscosting. (Round intermediate calculation to the nearest dollar amount.) Complete this question by entering your answers in the tabs below. Does it appear that the company is using variable costing or absorption costing to assign costs to the 3,250 units in its Finished Goods inventory? Complete this question by entering your answers in the tabs below. Assume that the company wishes to prepare this year's financial statements for its stockholders. Is Finished Goods inventory of $71,500 the correct amount to include on the balance sheet for external reporting purposes? Yes, because variable costing is generally accepted for extemal reporting. No, because variable costing is not generally accepted for extemal reporting. Yes, because absorption costing is generally accepted for external reporting. No, because absorption costing is not generally accepted for external reporting. 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? Finished goods inventory balance for axtomal reporting purposes