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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 125,000 20,000 Unaudited Costs $ 794,507 339,070 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. Units 75,000 410,000 Costs Direct Materials $ 224,500 Beginning inventory (80% complete as to labor) Units started Current costs Units completed and transferred to finished goods inventory Direct Labor $ 537,000 2,210,000 1,570,000 360,000 Required: a. 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.) 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 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 Physical Units Total Costs Materials Labor Overhead Flow of Production Units Units to be accounted for: Beginning WIP inventory Units started this period Total units to be accounted for 0 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 0 0 0 Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for $ 0 $ 0 $ 0 $ 0 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 Total ending WIP inventory Total costs accounted for $ $ 0 0 $ 0 $ $ 0 Complete this question by entering your answers in the tabs below. Required A Required B Required 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. General Journal Debit Credit Event 1 Record entry Clear entry View general Journal 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