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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%.

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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 Undits Costs Work in process, December 31 (materials 100% complete conversion 68% complete) Finished goods, December 31 40.000 45,000 $ 75,000 $125,500 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 $ 37.ee 5 63,000 Work in process, beginning of year (materials 100% complete: conversion sex complete) Started into production Costs added during the year Units completed during the year 20,000 700.000 $265,000 $2,150,000 195,000 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 Matorials 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.) View transaction list Journal entry worksheet > Record the entry to adjust the work in process and finished goods inventories Note: Enter debits before credits Event Goneral Journal Debit Credit

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