Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile, is designed to increase gas mileage by 10%. The company's controller suspects that the year-end dollar balances shown below in the inventory accounts may be incorrect.

Units Costs

Work in process, December 31 (materials 100% complete;

conversion 50% complete) 43,000 $78,000 Finished goods, December 31 48,000 $131,500

There were no finished goods inventories at the beginning of the year. The company uses the weighted-average method of process costing. There is only one processing department.

A review of the company's inventory and cost records shows the following:

Costs

Units Materials Conversion

Work in process, beginning of year

(materials 100% complete;

conversion 80% complete) 20,000 $40,000 $66,000

Started into production 703,000

Costs added during the year $768,000$2,180,000

Units completed during the year 698,000

Required:

1.Determine the equivalent units and the costs per equivalent unit for materials and conversion for the year.(Round your "Cost per equivalent unit" answers to 2 decimal places.)

Materials Conversion

Equivalent units of production ??? ???

Cost per equivalent unit ??? ???

2.Determine the amount of cost that should be assigned to the ending work in process and finished goods inventories.

Materials Conversion Total

Cost of ending work in process inventory ??? ??? ???

Cost of finished goods inventory ??? ??? ???

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.(Round intermediate calculations to 2 decimal places.)

Journal entry worksheet:

Record the entry to adjust the work in process and finished goods inventories

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