Sparn Lirnited incurs the following costs to produce and sell a single product: During the last yeat, 47,500 units were produced and 28,600 units were sold. The Fintshed Goods irventory account at the ind of ilns year shows a balance of $272.800 for the 6,200 unsold units. Required: 1-a. Is the company using absorption costing or variable costing to cost units in the Finished Goods liventoly account? Absorption costing Variable costina 1.b. Show computations to support your answer 2. Assume that the company wishes to prepare financial statements for the year fo issue to its shareholders a. Is the 5272,800 figure for finished goods imventory the correct amount to use on these statements for external reporting purposes? Yos. No b. At what dollat amount should the 6,200 units be catried in inventory for external reporting praposes