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You are employed by Spirit Company, a manufacturer of digital watches. The company's chief nancial ofcer is trying to verify the accuracy of the ending

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You are employed by Spirit Company, a manufacturer of digital watches. The company's chief nancial ofcer is trying to verify the accuracy of the ending work-in-process and nished goods inventories prior to closing the books for the year. You have been asked to assist in this verication. The year-end balances shown on Spirit Company's books are as follows: Units Costs Work in process, December 31 (50% complete as to labour and overhead) 266,000 $ 676,320 Finished goods, December 31 162,800 1,057,800 Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 60% of direct labour cost. There was no nished goods inventory at the beginning of the year. A review of Spirit Company's inventory and cost records has disclosed the following data, all of which are accurate: Costs Units Materials Labour Work in process, January 1 (80% complete as to labour and overhead) 112,800 $ 212,800 $ 331,000 Units started into production 916,000 Cost added during the year: Materials cost 1,380,000 Labour cost 2,075,000 Units completed during the year 762,800 The company uses the weighted-average cost method. Required: 1. Determine the equivalent units and costs per equivalent unit for materials, labour, and overhead for the year. (Round your "Costs per equivalent unit" to 3 decimal places.) 2. Determine the amount of cost that should be assigned to the ending work-in-process and finished goods inventories. (Round intermediate calculations to 3 decimal places and final answers to the nearest whole dollar amount.) Work-in- Finished Process Goods Total Total cost to be assigned to inventories 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 3 decimal places. If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry to rectify work in progress and finished goods inventory. Note: Enter debits before credits. Date General Journal Debit Credit December 314. Determine the cost of goods sold for the year assuming there is no under or overapplied overhead. (Round intermediate calculations to 3 decimal places and nal answers to the nearest whole dollar amount.) :I

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