Question

Bryan'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: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare a production cost report for the Preparation Department for January. The company uses the weighted average method. (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.) Bryan's Exteriors Production Cost Report-Preparation Department Month Ended January 31 Equivalent Units Physical Direct Materials Conversion Units Wood Adhesive Costs UNITS Units to account for: Total units to account for Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Production cost report

	Physical units	Wood	Adhesive	Conversion
Units to account for
Beginning WIP	0
Started into production	3,600
Total units to account for	3,600
Units accounted for
Completed and transferred out	3,200	3,200	3,200	3,200
Ending WIP	400	400	-	160
Total physical units accounted for	3,600
Equivalent units		3,600	3,200	3,360

Cost per equivalent unit

	Wood	Adhesive	Conversion
Beginning WIP
Costs added during Jan	$2,880	$1,440	$5,376
Total costs	$2,880	$1,440	$5,376
÷ Equivalent units	3,600	3,200	3,360
Cost per equivalent unit	$0.8	$0.45	$1.6

Units completed and transferred out	$9,120
Ending WIP
Wood	$320
Adhesive	-
Conversion cost	$256
Total Ending WIP	$576
Total cost accounted for	$9,696

Journal entry

Work in process- Compression	$9,120
Work in process- Preparation		$9,120

Work-in-process- Preparation

Balance		Transferred to compression	$9,120
Direct materials	$4,320
Direct labor	$2,976
Manufacturing overhead	$2,400
Balance	$576