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You are employed by Spirit Company, a manufacturer of digital watches. The company's chief financial officer 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 financial officer is trying to verify the accuracy of the ending work-in-process and finished goods inventories prior to closing the books for the year. You have been asked to assist in this verification. 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) 263,000 $ 673,440 Finished goods, December 31 160,400 1,048,800 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 finished 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) 110,400 $ 210,400 $ 328,000 Units started into production 913,000 Cost added during the year: Materials cost 1,365,0 Labour cost 2,060,000 Units completed during the year 760,400 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.) Materials Labour Overhead Equivalent units Costs per equivalent unit 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 inventories3. 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 31 Record entry Clear entry View general journal 4. 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 final answers to the nearest whole dollar amount.) Cost of goods sold

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