Sparn Limited incurs the following costs to produce and sell a single product: During the last year, 54,000 units were produced and 31,500 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $285,000 for the 7,500 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