4 The records of Fremont Corporation's initial and unaudited accounts show the following ending inventory balances, which must be adjusted to actual costs Work-in-process inventory Finished goods inventory Units 145,000 20,000 Unaudited Costs $799,927 345,110 As the auditor, you have learned the following information. Ending work-in-process inventory is 40 percent complete with respect to conversion costs. Materials are added at the beginning of the manufacturing process, and overhead is applied at the rate of 80 percent of the direct labor costs. There was no finished goods inventory at the start of the period. The following additional information is also available. Costs Beginning inventory (80% complete as to labor) Units started Units 79.000 450.000 Direct Materials $ 453,100 Direct Labor $ 655,000 Current costs 1,010,000 2.218.000 Units completed and transferred to finished goods inventory 384,000 Required: a. Prepare a production cost report for Fremont using the weighted-average method. (Hint: You will need to calculate equivalent units for three categories: materials, labor, and overhead) (Round "Cost per equivalent unit" to 2 decimal places.) FREMONT CORPORATION Production Cost Report-Weighted Average Flow of Production Units Units to be accounted for Physical Units Beginning WIP inventory Units started this period Total units to be accounted for 0 Units accounted for Units completed and transferred out Compute Equivalent Units Materials Labor Overhead Beginning WIP inventory Units started this period Total units to be accounted for Units accounted for Units completed and transferred out From beginning inventory Started and completed currently Transferred out Compute Equivalent Units Materials Labor Overhead Units in ending WIP inventory Total units accounted for 0 0 Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit: Materials Labor Overhead DETAILS Total Costs Materials Labor Overhead Costs to be accounted for Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Materials Labor Overhead Total Costs Materials Labor Overhead Costs accounted for Costs assigned to units transferred out Materials Labor Overhead Total costs of units transferred out Costs assigned to ending WIP inventory: Materials Labor Overhead Total ending WIP inventory Total costs accounted for +1 b. Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work-in-Process Inventory and Finished. Goods Inventory. Debit or credit Cost of Goods Sold for any difference. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet b. Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work-in-Process Inventory and Finished Goods Inventory Debit or credit Cost of Goods Sold for any difference. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet