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Please answer all requirements and be as detailed in your response as possible going step by step Thank you in Advance The records of Tillman
Please answer all requirements and be as detailed in your response as possible going step by step Thank you in Advance
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. Materlals 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 avallable: Requlred: 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 Inventorles be overstated or understated? Complete this question by entering your answers in the tabs below. 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.) Note: Round "Cost per equivalent unit" to 2 decimal places. Round your final answers to nearest whole number. 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. \begin{tabular}{|l|l|l|} \hline Required A & Required B & Required C \\ \hline \end{tabular} If the adjustment in requirement (b) is not made, will the company's income and inventories be overstated or understated? \begin{tabular}{|l|l|} \hline Income would have been \\ \hline Work in process would have been \\ \hline Finished goods would have been \\ \hline \end{tabular}Step by Step Solution
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