Roots exteriors produces exterior siding for homes. The preparation department begins with wood, which

| February 25, 2017

Question
Roots 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. March data for the preparation department are as follows (in millions)

Sheets: beginning work in process inventory 0 sheets, started production 3,300 sheets, completed and transferred out to compression in march 1,900 sheets, ending work in process inventory (45% of the way through the preparation process) 1,400 sheets

Costs: beginning work in process inventory $0, costs adding during march wood 2,600, Adhesives 1,365, direct labor 640, manufacturing overhead 2,445, Total costs 7,050

1. Draw a timeline for the preparation department.

2. Use the timeline 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.)

3.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.

4.Prepare the journal entry to record the cost of the sheets completed and transferred out to the compression department. 5. Post the journal entries to the work in process inventory-preparation T-account. What is the ending balance?

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