UNITS
Beginning Work-in-Process Inventory	0	sheets
Started in production	4,000	sheets
Completed and transferred out to	2,500	sheets
Compression in January
Ending Work-in-Process inventory (40% of	1,500	sheets
the way through the preparation process)
COSTS
Beginning Work-in-Process Inventory	$0
Costs added during January:
Wood	2,880
Adhesives	1,725
Direct labor	1,000
Manufacturing overhead allocated	2,069
Total costs	$7,674

Bergeron'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. January data for the Preparation Department are as follows:.

Requirement 1. Prepare a production cost report for the Preparation Department for January.

(Hint: Each direct material added at a different point in the production process requires its own equivalent units of production computation.) (Complete all answer boxes. Enter a "0" for any zero balances. Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)

Bergeron's Exteriors
Production Cost Report-Preparation Department
Month Ended January 31
		Equivalent Units
	Whole	Transferred	Direct Materials		Conversion
UNITS	Units	In	Wood	Adhesive	Costs
Units to account for:
Total units to account for
Units accounted for:
Total units accounted for

	Transferred	Direct Materials		Conversion	Total
COSTS	In	Wood	Adhesives	Costs	Costs
Costs to account for:
Total costs to account for
Cost per equivalent unit

Costs accounted for:
Total costs accounted for

Requirement 2. Prepare the journal entry to record the cost of the sheets completed and transferred out to the Compression Department. (Record debits first, then credits. Exclude explanations from any journal entries.)

Date		Accounts	Debit	Credit
Jan.	31

Requirement 3. Post the journal entries to the Work in process inventorylong dashPreparation T-account. What is the ending balance?Post all transactions to the Work-in Process Inventorylong dashPreparation T-account using the appropriate descriptions as posting references. Calculate and enter the ending balance of the account, "Bal. Jan. 31", on the appropriate side of the T-account.

Work-in-Process InventoryPreparation
Bal. Dec. 31	0