P20-38B

Learning Objectives 2, 3, 4 UNITS 1. Total cost per EUP $2.26 3. WIP Balance $1.836 September, including those P20-38B Preparing a production cost report, two materials added at different points, no beginning WIP or costs transferred in; journal entries John'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: Beginning w Transferred Completed Ending Wor conversic COSTS UNITS O sheets 3,700 sheets 2,000 sheets Beginning materials Transferre Materials Conversic $8,445; Beginning Work-in-Process Inventory Started in production Completed and transferred out to Compression in January Ending Work-in-Process Inventory (30% of the way through the preparation process) COSTS Beginning Work-in-Process Inventory Costs added during January: Wood 1,700 sheets $ 0 Require 1. Prep 2. Jour Adhesives 3,108 1,240 558 inclu Direct labor Manufacturing overhead allocated 1,450 P20-40B P Total costs $ 6,356 Lake Bo lift's pai lifts are L are inc Requirements 1. Prepare a production cost report for the Preparation Department for January. (Hint. Each direct material added at a different point in the production process requires its own equivalent unit of production computation.) 2. Prepare the journal entry to record the cost of the sheets completed and transferred out to the Compression Department. 3. Post the journal entries to the Work-in-Process InventoryPreparation T-account. What is the ending balance? Octob UNITS Begin Transf Com