Problem 3-4B Weighted average: Process cost summary equivalent units cost estimates C2 C3 P4 throughout the process. Direct materials are added as needed. The company uses monthly reporting pe- riods for its weighted-average 220,000 Switch Co. manufactures a single product in one department. Direct labor and overhead are added evenly process costing. During January, Switch completed and transferred units of product to finished goods inventory. Its 10,000 units of beginning work in process con- ocess at month-end are 40,000 units sisted of $7,500 of direct materials and $49,850 of conversion. In pr (50% complete with respect to direct materials and 30% complete with respect to conversion). During OTthe month, the company used direct materials of $112,500 in production and incurred conversion costs of $616,000. Required 1. Prepare the company's process cost summary for January using the weighted-average method. 2. Prepare the journal entry dated January 31 to transfer the cost of completed units to finished goods Check (1) EUP for conversion, 232,000 (2) Cost transferred inventory Analysis Component 3. The cost accounting process depends on several estimates. out to finished goods $741,400 a. Identify two major estimates that affect the cost per equivalent unit. b. In what direction might you anticipate a bias from management for each estimate in part 3a (as- sume that management compensation is based on maintaining low inventory amounts)? Explain your