8-63 (Static) Prepare a Production Cost Report and Adjust Inventory Balances: Weighted- Average Method (LO 8-3, 4) The records of Tillman Corporation's initial and unaudited accounts show the following ending inventory balances, which must be adjusted to actual costs: Units Work-in-process inventory 48,000 Finished goods inventory 15,000 Unaudited Costs $242,880 105,300 As the auditor, you have learned the following information. Ending work-in-process inventory is 35 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 90 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: Units Beginning inventory (25% complete as to labor) 32,000 Units started 118,000 Current costs Units completed and transferred to finished goods inventory 102,000 Required: Costs Direct Materials Direct Labor $ 116,640 436,860 $14,240 199,600 a. Prepare a production cost report for Tillman using the weighted-average method. 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 A Required B Required C Prepare a production cost report for Tillman 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.) TILLMAN CORPORATION Production Cost Report-Weighted-Average Flow of Production Units Physical Units Total Costs Materials Labor Overhead < Previ 4 of 4 Next > MacBook Pro Prepare a production cost report for Tillman 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 Units to be accounted for 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 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: Materials Labor Overhead Total costs of units transferred out Costs assigned to ending WIP inventory Materials Labor Overhead Tatal andint TILLMAN CORPORATION Production Cost Report-Weighted-Average Physical Units Total Costs Materials Labor Overhead Complete this question by entering your answers in the tabs below. Required A Required B Required 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 < 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 Clear entry View general journal < Required A Required C The records of Tillman Corporation's initial and unaudited accounts show the following ending inventory balances, which must be adjusted to actual costs: Units Work-in-process inventory 48,000 Finished goods inventory 15,000 Unaudited Costs $ 242,880 105,300 As the auditor, you have learned the following information. Ending work-in-process inventory is 35 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 90 percent of the direct labor costs. There was no finished goods inventory at the start of the period. The following additional informatic is also available: Costs Beginning inventory (25% complete as to labor)) Units started Units 32,000 Direct Materials $116,640 Direct Labor $14,240 118,000 Current costs 436,8601 199,600 Units completed and transferred to finished goods inventory 102,000 Required: a. Prepare a production cost report for Tillman using the weighted-average method. 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 A Required B Required 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 goods would have been