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Problem 8-63 (Static) Prepare a Production Cost Report and Adjust Inventory Balances: WeightedAverage Method (LO 8-3,4) The records of Tiliman Corporation's initial and unaudited accounts show the following ending inventory balances, which must be adjusted to actual costs: As the auditot, you have learned the following information. Ending work-in-process inventory is 35 percent complete with respect to conversion costs. Materiats are added at the beginning of the manufacturing process, and overhead is applled 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: Required: a. Prepare a production cost report for Tiliman using the weighted-average method. b. Show the joumal entry required to correct the difference between the unaudited records and actual ending balances of Work-inProcess Inventory and Finished Goods inventory. Debit or credit Cost of Goods Sold for any difference. c. If the adjustment in requirement (b) is not mode, will the company's income and inventories be overstated or understated? Complete this question by entering your answers in the tabs below. Prepare a production cost report for Tillman using the weighted-overage method, (Hint: You will heed to calculate equivalent units for three cotegories: materials, labor, and overhead.) Note: Round "Cost per equivalent unit" to 2 decimal places