8-57 (Algo) Prepare a Production Cost Report and Adjust Inventory Balances: Weighted- Average Method (LO 8-3, 4) The records of Fremont Corporation's Initial and unaudited accounts show the following oncing inventory balances, which must be adjusted to actual costs Unaudited Costs Work-in-process 160,800 inventory Units $803,992 349,540 Finished goods 19,800 inventory 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 Units Direct Materials Direct Labor Beginning inventory (88 complete as to labor 82,000 $ 327,088 5 885,000 Units started 488,008 Current costs 1,648,088 2,224,880 Units completed and transferred to finished goods inventory 102,000 Required: a Prepare a production cost report for Froment using the weighted average method (Hint: You will need to calculate equivalent units for three categories: materials, labor, and overhead) 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 c. if the adjustment in requirement (b) is not made, will the company's income and inventories be overstated or understated? Complete this question by entering your answers in the tabs below. Required Required Required A B 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: Beginning WIP inventory Units started this period Total unts to be accounted for Units accounted for: Units completed and transferred out From beginning inventory Started and completed currently Total transferred out Units in ending WIP Inventory Total unts accounted for Physical Total Units Costs Materials Labor Overhead Show less Required: a. Prepare a production cost report for Fremont using the weighted average method. (nt You will need to calculate equivalent units for three categories: materials, labor, and overhead) b. Show the joumal entry required to correct the difference between the uncuched 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 the adjustment in requirement [i) is not made, will the company's income and inventories berstated understated? Complete this question by entering your answers in the tabs below. Required Required Required A B C 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 Beginning WIP inventory Units started this period Total unts to be accounted for Units accounted for. Units completed and transferred lout From beginning inventory Started and completed currently Total transferred out Units in ending WIP inventory Total units accounted for 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: out Materials Labor Overhead Total costs of units transferred Costs assigned to ending WIP Inventory: Materials Labor Overhead Total ending WIP inventory Total costs accounted for Physical Total Units Costs Materials Labor Overhead < Required A Required B > Show less As the auditor, you have leamed 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. Direct Costs Materials Direct Labor Units Beginning inventory (88% corplete as to labori Units started 82,080 $ 327,088 $ 885,008 480,000 Current costs 1,640,000 2,224,000 Units completed and transferred to finished goods inventory 482,080 Required: a Prepare a production cost report for Froment using the weighted average method. (Hint. You will need to calculate equivalent units for three categories: materials, labor, and overhead) b. Show the journal entry required to correct the difference between the unaudited records and actus ending balances of Work-in-Process Inventory and Finished Goods Inventory. Debit or credit Cost of Goods Sold for any difference c. If the adjustment in requirement (b) is not made, will the company's income and inventories be overstated or understated? Complete this question by entering your answers in the tabs below. Required Required Required A B c 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 Show less A < A 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 1 General Journal Debit Credit Record entry View general journal Clear entry < Required A Required C > Problem 8-57 (Algo) Prepare a Production Cost Report and Adjust Inventory Balances: Weighted- Average Method (LO 8-3, 4) The records of Fremont Corporation's initial and unaudited accounts show the following ending inventory bele which must be adjusted to actual costs. Work-in-process Units Unaudited Costs 160,080 $883,992 Finished goods inventory 19,000 349,648 inventory As the auditor you have leamed the following information Ending work in process Inventory is 40 percent complcto with respect to conversion costs. Materials are added at the beginning of the manufacturing process, and overhead 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. Direct Costs Materials Direct Labor Units Beginning inventory (80% complete as to labori Units started 82,880 488,880 $ 327,088 $ 885,008 Current costs 1,640,088 2,224,088 Units completed and transferred to finished goods inventory 402,800 Required: a. Prepare a production cost report for Promont using the weighted average method. (Aht You will need to calculate equivalent units for three categories: materials, labor and when 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. Debt or credit Cost of Goods Sold for any difference. If the adjustment in requirement () is not made, will the company's income and inventories be overstated or understated? Complete this question by entering your answers in the tabs below. Required Required Required A B C If the adjustment in requirement (6) 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 goods would have been < Required B Required C > Help Save & Exit Submit Saved