Zap Rap Inc. is a manufacturer of audio CDs. The companys chief financial officer is trying to verify the accuracy of the December 31 work in process and finished goods inventories prior to closing the books for the year. He strongly suspects that the year-end dollar balances are incorrect, but he believes that all the other data are accurate. The year-end balances shown on Zap Raps books are as follows:

	Units			Costs
Work in process, December 31 (materials 100% complete; conversion 50% complete)		39,600		$	145,958
Finished goods, December 31		51,600		$	231,792

There were no finished goods inventories at the beginning of the year. The company uses the weighted-average method of process costing. There is only one processing department.

A review of the companys inventory and cost records has disclosed the following data:

				Costs
	Units			Materials			Conversion
Work in process, January 1 (materials 100% complete; conversion 80% complete)		24,800		$	39,432		$	60,264
Started into production		877,000
Costs added during the year				$	1,394,430		$	2,612,196
Units completed during the year		862,200

Required:

1.

Determine the equivalent units and the costs per equivalent unit for materials and conversion for the year. (Round your "Cost per equivalent unit" answers to 2 decimal places.)

2.

Determine the amount of cost that should be assigned to the ending work in process and finished goods 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 2 decimal places.)

4.	Determine the cost of goods sold for the year, assuming that there is no underapplied or overapplied overhead.