Problem 20-2B Weighted average: Cost per equivalent unit; costs assigned to products C2 C3 Abraham Company uses process costing to account for its production costs. The company has two production processes. Conversion is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. During September, the first process transferred 80,000 units of product to the next process. Beginning work in process consisted of 2,000 units that were 100% complete with respect to direct materials and 85% complete with respect to conversion. Of the units completed, 2,000 were from beginning work in process and 78,000 units were started and completed during the period. Beginning work in process had $58,000 of direct materials and $86,400 of conversion cost. At the end of September, the work in process inventory consists of 8,000 units that are 25% complete with respect to conversion. The direct materials cost added in September is $712,000, and conversion cost added is $1,980,000. The company uses the weighted-average method. I need assistance with Part 4, Analysis Component Assume that an error is made in determining the percentage of completion for units in ending inventory in the first process. Instead of being 25% complete with respect to conversion, they are actually 75% complete. Write a one-page memo to the plant manager describing how this error affects its September financial statements.

I need help with Part 4,

Analysis Component

4. Assume that an error is made in determining the percentage of completion for units in ending inventory in the first process. Instead of being 25% complete with respect to conversion, they are actually 75% complete. Write a one-page memo to the plant manager describing how this error affects its September financial statements.