Work problem Problem P18-39B using the FIFO method. The Dyeing Department beginning work in process of 65 units is 20% complete as to conversion costs. Round equivalent unit costs to four decimal places. 1. Cost per EUP DII $17.2018

Reference Problem P18-39B

Preparing a production cost report, two materials added at different points, no beginning WIP or costs transferred in; journal entries Bert'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: 1. Total cost per EUP 52.51 3. WIP Balance $1,269

Requirements
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 unit of production computation.)
2. Prepare the journal entry to record the cost of the sheets completed and transferred out to the Compression Department.
3. Post the journal entries to the Work-in-Process Inventory-Preparation T-account. What is the ending balance?

Transcribed Image Text:

UNITS Beginning Work-in-Process Inventory Started in production Completed and transferred out to Compression in January Ending Work-in-Process Inventory (25% of the way through 3,900 sheets 2,700 sheets the preparation process) COSTS Beginning Work-in-Process Inventory Costs added during January: 1,200 sheets Wood Adhesives Direct labor Manufacturing overhead 3,120 1,836 990 2,100 Total costs