Chart of Accounts 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 Department 142 Work in Process-Sifting Department 143 Work in Process-Packaging Department 151 Factory Overhead-Milling Department 152 Factory Overhead-Sifting Department 153 Factory Overhead-Packaging Department 161 Finished Goods 171 Supplies 172 Prepaid Insurance REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense White Diamond Four Company manufactunes flour by a series of three processes, beginning with wheat grain being introduced in the Miling Department. From the Mifing Departsent, the matertass pass thought the Stting and Paclagivg doparthents, emerging as peckaged refined flour: The balance in the accourt Work in Process-Shing Department was as foliows on July 1: The lotowing costs were chwrped to Work in Process Sitting Department during July: 1. Prepare a cost of production report for the Sifting Department for July. Cost of Production Report Instructions 2. Joumalicte the entries for costs translerred from Miling to Sifting and the costs transferrod from Sining fo Packaging. Use the date July 31 for all joumal entries. Chart of Accounts 153 Factory Overhead-Packaging Department 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 540 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 interest Expense 1. Prepare a cost of production report for the Sifting Department for July. Cost of Production Report Instructions Cost of Production Report Recelved from Milling Dopartment Total units accounted for by the Sithing Department Units to be assigned costs: tiventory in process, JAl + (3/5 completed) Started and completed in July Transferred to Packaging Department in July Inventory in process, July 31 (4/5 completed) Total units to be assigned costs \begin{tabular}{|c|c|c|c|} \hline \multirow{3}{*}{ costs } & \multicolumn{3}{|c|}{4} \\ \hline & \multicolumn{3}{|c|}{ Costs } \\ \hline & Direct Materials & Conversion & Total \\ \hline Cost per equivalent unit: & & & \\ \hline Total costs for July in Sifing Deportment & $ & 5 & \\ \hline Total equivalemt units & * & & \\ \hline Cost per equivalent unit & 5 & $ & \\ \hline \end{tabular} 3. Determine the increase or decrease in the cost per equivalent unit from dune to twy for direct materials and conversion costs. Direct materials: Conversion: 4. Discuss the uses of the cost of production report and the results of part (3). The cost of production report may be used as the basis for allocating product oobts between and The report can ase be uted to control costs by holding each department head responsble for the units entering production and the cous incurnd in the depurtment. Amy diflerences in unt product costs from one month to another, wuch as those in part (3), can be studied carefully and any vignificant differences invesigated. Equivalent units and related costs; cost of production report; entries Instructions The following costs were charged to Work in Process-Sitting Department during July: During July, 15,000 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,300 units, 4/5 completed. Required: 1. Prepare a cost of production report for the Siming Department for July. 2. Joumalize the entries for costs transferred from Mulling to Sining and the costs transferred from Sifting to Packaging. 3. Determine the increase or decrease in the cest per equivalont unit from June to July for direct materials and conversion costs. 4. Discuss the uses of the cost of production report and the results of part (3). Chart of Accounts 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 Department 142 Work in Process-Sifting Department 143 Work in Process-Packaging Department 151 Factory Overhead-Milling Department 152 Factory Overhead-Sifting Department 153 Factory Overhead-Packaging Department 161 Finished Goods 171 Supplies 172 Prepaid Insurance REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense White Diamond Four Company manufactunes flour by a series of three processes, beginning with wheat grain being introduced in the Miling Department. From the Mifing Departsent, the matertass pass thought the Stting and Paclagivg doparthents, emerging as peckaged refined flour: The balance in the accourt Work in Process-Shing Department was as foliows on July 1: The lotowing costs were chwrped to Work in Process Sitting Department during July: 1. Prepare a cost of production report for the Sifting Department for July. Cost of Production Report Instructions 2. Joumalicte the entries for costs translerred from Miling to Sifting and the costs transferrod from Sining fo Packaging. Use the date July 31 for all joumal entries. Chart of Accounts 153 Factory Overhead-Packaging Department 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 540 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 interest Expense 1. Prepare a cost of production report for the Sifting Department for July. Cost of Production Report Instructions Cost of Production Report Recelved from Milling Dopartment Total units accounted for by the Sithing Department Units to be assigned costs: tiventory in process, JAl + (3/5 completed) Started and completed in July Transferred to Packaging Department in July Inventory in process, July 31 (4/5 completed) Total units to be assigned costs \begin{tabular}{|c|c|c|c|} \hline \multirow{3}{*}{ costs } & \multicolumn{3}{|c|}{4} \\ \hline & \multicolumn{3}{|c|}{ Costs } \\ \hline & Direct Materials & Conversion & Total \\ \hline Cost per equivalent unit: & & & \\ \hline Total costs for July in Sifing Deportment & $ & 5 & \\ \hline Total equivalemt units & * & & \\ \hline Cost per equivalent unit & 5 & $ & \\ \hline \end{tabular} 3. Determine the increase or decrease in the cost per equivalent unit from dune to twy for direct materials and conversion costs. Direct materials: Conversion: 4. Discuss the uses of the cost of production report and the results of part (3). The cost of production report may be used as the basis for allocating product oobts between and The report can ase be uted to control costs by holding each department head responsble for the units entering production and the cous incurnd in the depurtment. Amy diflerences in unt product costs from one month to another, wuch as those in part (3), can be studied carefully and any vignificant differences invesigated. Equivalent units and related costs; cost of production report; entries Instructions The following costs were charged to Work in Process-Sitting Department during July: During July, 15,000 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,300 units, 4/5 completed. Required: 1. Prepare a cost of production report for the Siming Department for July. 2. Joumalize the entries for costs transferred from Mulling to Sining and the costs transferred from Sifting to Packaging. 3. Determine the increase or decrease in the cest per equivalont unit from June to July for direct materials and conversion costs. 4. Discuss the uses of the cost of production report and the results of part (3)