The records of Fremont Corporations initial and unaudited accounts show the following ending inventory balances, which must be adjusted to actual costs

As the auditor, you have learned the following information. Ending work-in-process inventory is 40 percent complete with respect to conversion costs. Materials are added at the beginning of the manufacturing process, and overhead is applied at the rate of 80 percent of the direct labor costs. There was no finished goods inventory at the start of the period. The following additional information is also available.

Prepare a production cost report for Fremont using the weighted-average method. (Hint: You will need to calculate equivalent units for three categories: materials, labor, and overhead.) (Round "Cost per equivalent unit" to 2 decimal places.)

b. Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work-in-Process Inventory and Finished Goods Inventory. Debit or credit Cost of Goods Sold for any difference. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c. If the adjustment in requirement (b) is not made, will the companys income and inventories be overstated or understated?

The records of Fremont Corporation's initial and unaudited accounts show the following ending inventory balance Units Unaudited Costs Work-in-process inventory Finished goods inventory 205.000 816,187 383,230 24,000 As the auditor, you have learned the following information. Ending work-in-process inventory is 40 percent compl inventory at the start of the period. The following additional information is also available Costs Direct Materials Direct Labor Units 91,000 570,000 Beginning inventory (80% complete as to labor) Units started Current costs Units completed and transferred to finished goods inventory S 319,100 S 986,000 1,730,000 2,242,000 458,000 Required: a. are a production cost report for Fremont using the ted-average method. (Hint: You will need to calcul FREMONT CORPORATION Cost of Units Physical Units Units to be accounted for Beginning WIP inventory Units started this period Total units to be accounted for alent Materials Labor Units accounted for Units completed and transferred out: From beginning inventory Started and completed currently Transferred out Units in ending WIP inventory Total units accounted for TAIL Total Costs Materials Labor Costs to be accounted for Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit: Materials Labor Costs accounted for. Costs assigned to units transferred out Materials Labor Overhead Total costs of units transferred out Costs assigned to ending WIP inventory Materials Labor Overhead Total ending MP inventory Total costs accounted for b. Show the jounal entry required to correct the difference between the unaudited records and actual ending balances of Work-in-Pr the first account field.) View transaction list Journal entry worksheet Record the difference between the unaudited records and actual ending Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal c. If the adjustment in requirement (b) is not made, will the company's income and inventories be overstated or understated? Income would have been Finished goods would have been