Question
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,
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.
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