Root's Exterior's produces exterior siding for homes. Preparation Department begins with wood, which is chopped into small bits. At the end of the process, an adhesive is added. Then the wood/adhesivemixture goes on to the Compression Department, where the wood is compressed into sheets. Conversion costs are added evenly throughout the preparation process. March data are for the preparation department are as follows Sheets Beginning WIP Inventory 0 sheets; started production 3,300 sheets; completed and transferred out to Compression in March 1,900 sheets; Ending work as process inventory (45% of the way through the preparations process) 1,400 sheets. Costs Beginning work in process inventory 0; costs adding during March - Wood 2,600; Adhesive 1,365; Direct labor 640; Manufacturing Overhead 2,445; Total costs $7,050.

1. Draw a timeline for the Preparatio Department.

2. Use the timeline to help compute the equivalent (hint: each direct material added at a different point in the production process requires its own equivalent unit computation)

3. Compute the total costs of the units (sheets)

a. Completed and transferred out to the Compression Department

b. In the Preparation Department's Ending work in process inventory.

4. Prepare the journal entry to record the cost of the sheets completed and transferred out to the Compression Department.

5. Post the journal entries to the Work in process inventory-Preparation T-account. What is the ending balance?