Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile, is designed to increase gas mileage by $20\%.$ 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$)35,000$ $ $70,000$

Finished goods, December $3140,000$ $ $123,500$

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$)30,000$ $ $32,000$ $ $58,000$

Started into production $785,000$

Costs added during the year $ $760,000$ $ $2,100,000$

Units completed during the year $780,000$ 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.$)$