The records of Fremron Corporation's initial and ur audited accounts show the following ending invenilory balances, which us! Le adjusted to aclual costs Work in process inventory Finished goods inventory Units 160,000 19,000 Unaudiad Coats $833,952 349.840 As the auditor, you have larmer the following information, Ending work-n-process inventory is 41 parent complete with respect to conversion cas, Materials are added at the beginning of the manufacturing process, and overhead is applied at the rate of O percent of the direct labor costs. There was no finished youds inventory al the start of the period. The following aduilional information is also available. Units 82000 480 000 Beginning invertory 100% complete a lo labor Units started Current coats Untits completed and transferred to inished goods inventory 3 Costa Direct Materials 327.000 1,640,000 Druci Labor 3 805.000 2.724.000 402000 Required: a. Prepare a production cost regert for Fremant using the weighted average method. (Hint: You will need to calculate equivalent units for three categories: materials, labor, and avcrtcad.) (Round "Cost per equivalent unit" to 2 decimal places. FREMONT CORPORATION Production Cost Report-Weighted Average Flow of Production Units Physical Units Units to be accounted for Beginning WP Inventory Uits started this period Total unts to be ancourried for Compite Equivalent Units Materials Labor Overhead Linits Accounted for Units completed and transtored out: Fram beginning inventory Started and completed currently Transferred out Unts in Anding WP inventory Total unts accounted for 0 0 0 0 DETAILS Materials Labor Total Costs Overhead Costs to be accounted far: Casts in beginning WIP inventory Current period casts Total costs to be accounted for S0S0S0 $ Cost per equivalent unit: Materials Labar Ovnrhead $ 0 Costs accounted for Casts 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 WIP inventory Total costs accounted for S 0 $ 0 $ 0 $ 0 $ 0 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 na entry is required for a transaction/event, select "No joumal entry required" in the first account field.) View transaction list Journal entry worksheet Record the difference between the unaudited records and actual ending balances of Work-in-Process Inventory and Finished Goods Inventory. Note: Enter dcbits 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 Work in process would have been Finished goods would have been