Root's 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. March data for the Preparation Dept. are as follows (in millions):

Sheets:

Begining work in process inventory - 0 sheets

Started production - 3,300 sheets

Completed and transferred out to Compression in March - 1,900 sheets

ENding work in process inventory (45%of the way through the preparation process)-1400 sheets

Costs:

Beginning work in process inventory- $0

Costs adding during March:

Wood - 2,600

Adhesives-1365

Direct Labor-640

Manufacturing overhead-2,445

Total costs: $7,050

REQUIREMENTS:

• Draw a time line for the Preparation Department
• Use the time line to help you compute the equivalent. (HINT: Each direct material added at a different point in the production process requires its own equivalent-unit computation)
• Compute the total costs of the units (sheets) -( a.) Completed and transferred out to the Compression Department. (b.) In the Preparation Departments Ending work in process inventory.
• Prepare the journal entry to record the cost of the sheets completed and transferred out to the compression Dept.
• Post the journal entries to the Work in process inventory-Preparation T-account. What is the ending balance?