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I need help with requirement a The records of Fremont Corporation's initial and unaudited accounts show the following ending inventory balances, which must be adjusted
I need help with requirement a
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 120,000 20,000 Unaudited Costs $793,152 337,560 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 Direct Materials Direct Labor $ 240,000 S 545.00 Units 80,000 400,000 Beginning inventory (80% complete as to labor) Units started Current costs Units completed and transferred to finished goods inventory 1,568,000 360,000 Required: 2. 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) HerStep by Step Solution
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