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) Finished goods, December 31 253,000 152,400 $ 663,840 1,018,800 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 $ 202,400 $ 318,000 102,400 903,000 Work in process, January 1 (80% complete as to labour and overhead) Units started into production Cost added during the year: Materials cost Labour cost Units completed during the year 1,315,000 2,010,000 752,400 The company uses the weighted average cost method. 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- Process Finished 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 1 > 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