Bergeron's Exterior

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.

JanuaryJanuary

data for the Preparation Department are as follows: 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.

JanuaryJanuary

data for the Preparation Department are as follows: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.

JanuaryJanuary

data for the Preparation Department are as follows: 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. JanuaryJanuary data for the Preparation Department are as follows:

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

Prepare a production cost report for the Preparation Department for

JanuaryJanuary.

(Hint :

Each direct material added at a different point in the production process requires its own equivalent units of production computation.