Sierra Company incurs the following costs to produce and sell its only product. 11 10 $ Variable conta per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year! Fixed manufacturing overhead Pixed selling and administrative expenses $ 5 $ 84,750 $295,000 During this year 28,250 units were produced and 24,500 units were sold. The Finished Goods inventory account at the end of this year shows a balance of $93.750 for the 3.750 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 3,750 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 $93,750 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. Reg 1A Req 1B Reg 2A Reg 2B Calculate this year's ending balance in Finished Goods Inventory two ways-using variable costing and using a costing. (Round intermediate calculation to the nearest dollar amount.) Ending Balance in Finished Goods Variable costing Absorption costing Rog Req 13 > 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 3,750 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 $93,750 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. Reg 1A Reg 13 Req 2A Rec 28 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 pur oses? Finnhed goods inventory balance for external reporting purposes