Spar Limited incurs the following costs to produce and sell a single product: Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per years Fixed manufacturing overhead Fixed selling and administrative expenses 16 7 265,00 421,500 During the last year. 44,300 units were produced and 28,100 unts were sold. The Finished Goods inventory account at the end of the year shows a balance of $145.800 for the 5,400 unsold units. Required: 1-a. Is the company using absorption costing or variable costing to cost units in the Finished Goods Inventory account? Absorption costing Variable costing 1-b. Show computations to support your answer Variable Costing Absorption Costing Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Total cost, 5,400 units $ 0 $ 2. Assume that the company wishes to prepare financial statements for the year to issue to its shareholders. a. Is the $145,800 figure for finished goods inventory the correct amount to use on these statements for external reporting purposes? Yes O No 2. Assume that the company wishes to prepare financial statements for the year to issue to its shareholders a. Is the $145,800 figure for finished goods inventory the correctamount to use on these statements for external reporting purposes? O Yes O No b. At what dollar amount should the 5,400 units be carried in Inventory for external reporting purposes? Inventory value o endemal reporting purposes