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The records of Fremont Corporation's initial and unaudited accounts show the following ending Inventory balances, which must be adjusted to actual costs UnitsUnaudited Costs Work-in-process inventory Finished gaods inventory 200,000 $ 814 832 361,120 23,000 As the auditor, you have learned the following information. Ending work-in-process inventory is 40 percent complete with respect to conversion costs. Matenals 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 Direct MaterialsDirect Labor Beginning inventory (80% complete as to labor) Units started Current costs Units complated and transferred to finished goods inventory 5 262 500 $ 966,500 560,000 1,720,000 2 240,000 450,000 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.) Flow of Production Units l Units Units to be accounted for Beginning WIP inventory Unils started this periad Total units to be accounted for Compute Equivalent Units Labor Materials Overhead Units accounted for Units completed and transferred out From beginning inventory Started and completed currently Transferred out Units in ending WIP inventory Total units accounted for 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 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 b. Show the jounal entry required to cormect the ditterence 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 diterence. (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) oods Inventory Debit or credit Cost of Goods Sold to View transaction list Journal entry worksheet Record the difference between the unaudited records and actual ending balances of Work-in-Process Inventory and Finished Goods Inventory. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general jourmal c. If the adjustment in requirement (b) is not made, will the company's income and inventories be overstated or understated? Income would have been Work in process would have been Finished gaods woukd have been