As to wrapping the upholstery around .............................. that's purely personal pref.
On my 7R style CR seat I did take the cover around and glued underneath to finish . On the KZ750 Tracker [ XR750 seat ] I'll simply upholster a seat pad and then attach that to the seat so it looks [ and is ] a totally seperate piece.
IF you are doing the whole job yourself [ maybe first time?] it's much simpler to take the cover over the upholstery [ foam ] and finish / glue it underneath.
You can get the profile how you want by adding / shaping the foam before covering.