P21-2B The Southern Cotton Company produces cotton fabric in a three-stage process: cleaning, spinning, and weaving. Costs incurred in the Cleaning Department during September are summarized as follows: Sep. 1 balance Direct materials Direct labor WORK IN PROCESS INVENTORY-CLEANING Manufacturing overhead 0 66,500 4,458 6,950 Direct materials (raw cotton) are added at the beginning of the cleaning process, while con- version costs are incurred evenly throughout the process. September activity in the Cleaning Department included cleansing of 17.000 pounds of cotton, which were transferred to the Spinning Department. Also, work began on 2.000 pounds of cotton, which on September 30 were 70% of the way through the cleaning process. Required 1. Draw a time line for the Cleaning Department, similar to Exhibit 21-6. 2. Use the time line to help you compute the number of equivalent units and the cost per equivalent unit in the Cleaning Department for September. 3. Show that the sum of

(a) cost of goods transferred out of the Cleaning Department, and

(b) ending Work in Process Inventory-Cleaning equals the total cost accumulated in the department during September. 4. Journalize all transactions affecting the company's cleaning process during September. including those already posted.