Halls 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 (in millions):

Sheets

Beginning WIP - 0

Started productipon - 3600 sheets

Completed & transferred to compression: 1910 sheets

Ending WIP inventory (40% of the way through completion) 1690 sheets

Costs

Beginning WIP

Costs added:

Wood: 2664

Adhesives: 1337

Direct labor: 650

Manf. Overhead: 1936

Total Costs: 6587

R1. Draw a time line.

R2. Compute the Bottling Department equivalent units for the month of February. Use the weighted-average method.

R3. Compute the total costs of the units (sheets) Completed and transferred out to the Compression Department. b. In the Preparation Departments Ending work in process inventory. R4. Prepare the journal entry to record the cost of the sheets completed and transferred out to the Compression Department.

R5. Post the journal entries to the Work in process inventoryPreparation T-account. What is the ending balance?