Jones 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: Requirement 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 units of productioncomputation.) (Complete all answer boxes. Enter a "0" for any zero balances. Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units ofproduction.)
Jone's Exteriors
Production Cost Report-Preparation Department
Month Ended January 31
Equivalent Units
Whole Transferred Direct Materials Conversion
UNITS Units In Wood Adhesive Costs
Units to account for:
Total units to account for
Units accounted for:
n/a
n/a
Total units accounted for n/a
Transferred Direct Materials Conversion Total
COSTS In Wood Adhesives Costs Costs
Costs to account for:
n/a
n/a
Total costs to account for n/a
n/a
Cost per equivalent unit n/a
Costs accounted for:
n/a
n/a
Total costs accounted for n/a
Requirement 2.
Prepare the journal entry to record the cost of the sheets completed and transferred out to the Compression Department. (Record debits first, then credits. Exclude explanations from any journal entries.)
Date Accounts Debit Credit
Jan. 31
Requirement 3.
Post the journal entries to the Work in process inventorylong dash—Preparation T-account. What is the ending balance?Post all transactions to the Work-in-Process Inventorylong dash—Preparation T-account using the appropriate descriptions as posting references. Calculate and enter the ending balance of the account, "Bal. Jan. 31", on the appropriate side of the T-account.
Work-in-Process Inventory—Preparation
Bal. Dec. 31 0
Choose from any list or enter any number in the input fields and then continue to the next question.
UNITS
Beginning Work-in-Process Inventory 0 sheets
Started in production 3,800 sheets
Completed and transferred out to 2,900 sheets
Compression in January
Ending Work-in-Process inventory (30% of 900 sheets
the way through the preparation process)
COSTS
Beginning Work-in-Process Inventory $0
Costs added during January:
Wood 2,888
Adhesives 1,914
Direct labor 987
Manufacturing overhead allocated 2,500
Total costs $8,289