Note: ALL 2 questions are compulsory and MUST be attempted. (Total 80 marks). Problem 1: XYZ Ine. is a manufacturer of audio CDs. The company's chief financial officer is trying to verify the accuracy of the December 31 work in process and finished goods inventories prior to closing books for the year. He strongly suspects that the year-end dollar balances are incorrect, but he believes that all other data are accurate. The year ended balances The company accounts for units and costs by using FIFO method. There is only one processing department, information for which provided below: The 70000 figure for the beginning inventory in the mixing department consisted of the following cost elements: raw materials, 22000; direct labor, \$28'000; and overhead applied, $20000. Required: 3IPw0avl28000200002200070000 1. Determine the equivalent units and unitcosts for material so as for conversion. (10 marks) 2. Determine the ending amount of WIP, FG, and COGS. (10 marks) 3. Prepare the necessary correcting journal entries to adjust items above (10 marks) FG=60000Note:Total30marksWIP=28k+30k=58k Note: ALL 2 questions are compulsory and MUST be attempted. (Total 80 marks). Problem 1: XYZ Ine. is a manufacturer of audio CDs. The company's chief financial officer is trying to verify the accuracy of the December 31 work in process and finished goods inventories prior to closing books for the year. He strongly suspects that the year-end dollar balances are incorrect, but he believes that all other data are accurate. The year ended balances The company accounts for units and costs by using FIFO method. There is only one processing department, information for which provided below: The 70000 figure for the beginning inventory in the mixing department consisted of the following cost elements: raw materials, 22000; direct labor, \$28'000; and overhead applied, $20000. Required: 3IPw0avl28000200002200070000 1. Determine the equivalent units and unitcosts for material so as for conversion. (10 marks) 2. Determine the ending amount of WIP, FG, and COGS. (10 marks) 3. Prepare the necessary correcting journal entries to adjust items above (10 marks) FG=60000Note:Total30marksWIP=28k+30k=58k