Hello, I am having trouble answering question 2. Please help

Accounting 2 Handouts Assignment 8.2 Handout 1. Hall's Exteriors produces exterior siding for homes. The Preparation Department begins with wood, which is chopped into small bits. At the end of the process, an adhesive is added. Then the wood/adhesive mixture goes on to the Compression Department, where the wood is compressed into sheets. Conversion costs are added evenly throughout the preparation process. January data for the Preparation Department are as follows (in millions): Requirements R1. Draw a time line for the Preparation Department. R2. Use the time line to help you compute the equivalent. (Hint: Each direct material added at a different point in the production process requires its own equivalent unit computation.) R3. Compute the total costs of the units (sheets) a. Completed and transferred out to the Compression Department. b. In the Preparation Department's Ending work in process inventory. R4. Prepare the journal entry to record the cost of the sheets completed and transferred out to the Compression Department. R5. Post the journal entries to the Work in process inventoryPreparation Taccount. What is the ending balance? Accounting 2 Assignment Handout 2011 Pearson Education Page 1 of 2 4/17/2016 Accounting 2 Handouts 2. SeaWorthy uses three processes to manufacture lifts for personal watercraft: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lifts. The lifts are transferred to finished goods before shipment to marinas across the country. SeaWorthy's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows: The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department. SeaWorthy uses weighted-average process costing. Requirements R1. Draw a time line for the Testing Department. R2. Use the time line to compute the number of equivalent units of work performed by the Testing Department during the period. R3. Compute SeaWorthy's transferred-in and conversion costs per equivalent unit. Use the unit costs to assign total costs to (a) units completed and transferred out of Testing and (b) units in Testing's Ending work in process inventory. R4. Compute the cost per unit for lifts completed and transferred out to Finished goods inventory. Why would management be interested in this cost? Accounting 2 Assignment Handout 2011 Pearson Education Page 2 of 2 4/17/2016