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(Solved) ACC 201-Root's Exteriors produces exterior siding for homes.


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 sheetsStarted production - 3,300 sheetsCompleted and transferred out to Compression in March - 1,900 sheetsENding work in process inventory (45%of the way through the preparation process)-1400 sheetsCosts:Beginning work in process inventory- $0Costs adding during March: Wood - 2,600 Adhesives-1365 Direct Labor-640 Manufacturing overhead-2,445Total costs: $7,050REQUIREMENTS:Draw a time line for the Preparation DepartmentUse 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?

 


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Oct 15, 2019

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