The records of Tillman Corporation's initial and unaudited accounts show the following ending inventory balances, which must be adjusted to actual costs: Work-in-process inventory Finished goods inventory Units 48,000 15,000 As the auditor, you have learned the following information. Ending work-in-process inventory is 35 percent complete with respect to conversion costs. Materials are added at the beginning of the manufacturing process, and overhead is applied at the rate of 90 percent of the direct labor costs. There was no finished goods inventory at the start of the period. The following additional information is also available: Beginning inventory (25% complete as to labor) Units started Unaudited Costs Current costs Units completed and transferred to finished goods inventory $ 242,880 105,300 Required Required Required A B с currently From beginning inventory Started and completed Required: a. Prepare a production cost report for Tillman using the weighted-average method. b. Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work-in-Process Inventory and Finished Goods Inventory. Debit or credit Cost of Goods Sold for any difference. c. If the adjustment in requirement (b) is not made, will the company's income and inventories be overstated or understated? Flow of Production Units Units to be accounted for: Beginning WIP inventory Units started this period Total units to be accounted for Units accounted for: Units completed and transferred out: Total transferred out Complete this question by entering your answers in the tabs below. Units in ending WIP inventory Total units accounted for Prepare a production cost report for Tillman using the weighted-average method. (Hint: You will need to calculate equivalent units for three categories: materials, labor, and overhead.) Note: Round "Cost per equivalent unit" to 2 decimal places. Units 32,000 118,000 TILLMAN CORPORATION Production Cost Report-Weighted-Average 102,000 0 Physical Total Units Costs 0 Direct Materials $ 116,640 436,860 ol Costs Direct Labor $ 14,240 199,600 0 Materials Labor Overhead 0 0 Show less