Jones 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. 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.)3. Post the journal entries to the Work in process inventorylong dash—Preparation T-account. What is the ending balance?Post all transactions to the Work-in-Process Inventorylong dash—Preparation 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. UNITS Beginning Work-in-Process Inventory 0 sheetsStarted in production 3,800 sheetsCompleted and transferred out to 2,900 sheetsCompression in JanuaryEnding Work-in-Process inventory (30% of 900 sheetsthe way through the preparation process)COSTSBeginning Work-in-Process Inventory $0Costs added during January:Wood 2,888Adhesives 1,914Direct labor 987Manufacturing overhead allocated 2,500Total costs $8,289