PROBLEM 4-6 Costing Inventories; Journal Entries; Cost of Goods Sold-Weighted Average Cost Method [LO2 - CC8; LO3-CC11; L04 - CC12, 13, 14] Earth Company is a manufacturer of circuit boards. The company's chief financial officer is trying to verify the accuracy of the ending work-in-process and finished goods inventories prior to closing the books for the year. You have been asked to assist in this verification. The year-end balances shown on Earth Company's books are as follows: CHECK FIGURES (1) Labour: $2.63 (rounded) per unit (2) December 31 WIP: $933.750 (4) COGS: $3,582,000 (600K units @ $5.97) Units Costs 250,000 $ 700.000 Work in process, December 31 (50% complete as to labour and overhead) Finished goods, December 31 150,000 1,000,000 Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 70% of direct labour cost. There was no finished goods inventory at the beginning of the year. A review of Earth Company's inventory and cost records has disclosed the following data, all of which are accurate: Costs Units Materials Labour 100,000 $ 200,000 $ 315.000 900,000 Work in process, January 1 (80% complete as to labour and overhead) Units started into production Cost added during the year: Materials cost Labour cost Units completed during the year 1,300,000 1.985.000 750,000 The company uses the weighted average cost method. Required: 1. Determine the equivalent units and costs per equivalent unit for materials, labour, and overhead for the year. 2. Determine the amount of cost that should be assigned to the ending work-in-process and finished goods inventories. 3. Prepare the necessary correcting journal entry to adjust the work-in-process and finished goods inventories to the correct balances as of December 31. 4. Determine the cost of goods sold for the year assuming there is no under- or overapplied overhead