15 CHART OF ACCOUNTS White Diamond Flour Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 141 Work in Process Milling 142 Work in Process Sifting 143 Work in Process Packaging 151 Factory Overhead Milling 152 Factory Overhead Sifting 153 Factory Overhead Packaging 161 Finished Goods 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Department From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour The balance in the account Work in Process Sifting Department was as follows on July 1 Work in Process Sifting Department (1,000 units, 3 5 completed) Direct materials (1,000 $2 25) $2,250 Conversion (1,000 3 5 $0 40) 240 $2,490 The following costs were charged to Work in Process Sifting Department during July Direct materials transferred from Milling Department 15,400 units at $2 35 a unit $36,190 Direct labor 4,420 Factory overhead 2,546 During July, 14,800 units of flour were completed Work in Process Sifting Department on July 31 was 1,600 units, 4 5 completed Required 1 Prepare a cost of production report for the Sifting Department for July If an amount is zero, enter 0 Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount 2 Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging Refer to the Chart of Accounts for correct wording of account titles Use the date July 31 for all journal entries 3 Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs Round your answers to the nearest cent 4 Discuss the uses of the cost of production report and the results of part (3)

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15 CHART OF ACCOUNTS White Diamond Flour Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 141

CHART OF ACCOUNTS

White Diamond Flour Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
141	Work in Process-Milling
142	Work in Process-Sifting
143	Work in Process-Packaging
151	Factory Overhead-Milling
152	Factory Overhead-Sifting
153	Factory Overhead-Packaging
161	Finished Goods
171	Supplies
172	Prepaid Insurance
173	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour.

The balance in the account Work in Process-Sifting Department was as follows on July 1:

Work in Process-Sifting Department
(1,000 units, 3/5 completed):
Direct materials (1,000 $2.25)	$2,250
Conversion (1,000 3/5 $0.40)	240
	$2,490

The following costs were charged to Work in Process-Sifting Department during July:

Direct materials transferred from Milling Department:
15,400 units at $2.35 a unit	$36,190
Direct labor	4,420
Factory overhead	2,546

During July, 14,800 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,600 units, 4/5 completed.

	Required:
1.	Prepare a cost of production report for the Sifting Department for July. If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.
2.	Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging. Refer to the Chart of Accounts for correct wording of account titles. Use the date July 31 for all journal entries.
3.	Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Round your answers to the nearest cent.
4.	Discuss the uses of the cost of production report and the results of part (3).