pims 6 Sierra Company incurs the following costs to produce and sell its only product. Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $9 $7 $4 $ 7 $ 93,750 $285,000 P eferences During this year. 31,250 units were produced and 24,500 units were sold. The Finished Goods inventory account at the end of this year shows a balance of $135,000 for the 6,750 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 6,750 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 $135,000 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? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 2B 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.) < Prev 6 of 7 Next > tv OTRO Chew 5 Assignment O 6 16. Does it appear that the company is using variable costing or absorption costing to assign costs to the 6,750 units in im Goods inventory? 2. Assume that the company wishes to prepare this year's financial statements for its stockholders. as Finished Goods inventory of $135,000 the correct amount to include on the balance sheet for external reporting pur 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 below. Reg 1A Reg 18 Reg 2A Reg 28 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.) Ending Balance in Variable costing Absorption costing Finished Goods Req 18 >> Required: 1a. Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption ca 1-b. Does it appear that the company is using variable costing or absorption costing to assign costs to the 6,750 units in its Finis Goods inventory? 2. Assume that the company wishes to prepare this year's financial statements for its stockholders. a. Is Finished Goods inventory of $135,000 the correct amount to include on the balance sheet for external reporting purposem 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 below. Reg 1A Reg 2A Does it appear that the company is using variable costing or absorption costing to assign costs to the 6,750 units in its Finished Goods inventory? Absorption costing Variable costing Req 1A Req 2A > Complete this question by entering your answers in the tabs below. Req 1A Req 18 deg 2A Req 28 Assume that the company wishes to prepare this year's financial statements for its stockholders. Is Finished Goods inventory of $135,000 the correct amount to include on the balance sheet for external reporting purposes? Yes, because variable costing is generally accepted for external reporting No, because variable costing is not generally accepted for external reporting Yes, because absorption costing is generally accepted for external reporting No, because absorption costing is not generally accepted for external reporting b. What balance should be reporte Complete this question by entering your answers in the tabs below. nces Req 1A Req 1B Req 2A Req 28 Assume that the company wishes to prepare this year's financial statements for its stockholders. What balance reported in the Finished Goods Inventory account for external reporting purposes? Finished goods inventory balance for external reporting purposes < Req 2A Req 28