Metro company incurs the following costs to produce and sell chairs: Variable costs per unit E Direct materials 100 Direct labour 50 Variable manufacturing overhead 20 Variable selling and administrative expenses 40 Fixed costs per year Fixed manufacturing overhead 6900,000 Fixed selling and administrative expenses E3,000,000 In the year ended 31 March 2021, 30,000 units were produced, and 25,000 units were sold. The finished goods inventory account at the end of the year shows a balance of E850,000 for the 5,000 unsold units. (a) Comment on whether the company is using absorption (full) costing or marginal (variable) costing in calculating its cost of inventory of finished goods at 31 March 2021. Show all workings clearly. (b) Is the $850,000 figure for the finished goods inventory correct to use for external reporting purposes? Explain