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Problem 8-63 (Static) Prepare a Production Cost Report and Adjust Inventory Balances: WeightedAverage 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: 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 avaliable: 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-InProcess 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. Show the joumal entry required to correct the difference between the unaudited records and actual ending balances of Work-in-Proceis Inventory and Finished Goods Inventory. Deblt or credit Cost of Goods Sold for any difference. Notes If he entry is required for a transaction/event, select "No journal entry required" in the first account field. a. Prepare a production cost report for Tiliman 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-inProcess 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. 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. Note: if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the difference between the unaudited records and actual ending balances of Work-in-Process Inventory and Finished Goods Inventory. Notei Enter debits before ciedits