Cost of Production Report 1. Prepare a cost of production roport for the Sitting Departinent for Jiy. If an arnount is zero, enter "O. Round your Cost per equivalent unit answers to two decimal places. WHITE DIAMOND FLOUR COMPANY Cost of Production Repert-Sitting Department For the Month Ended July 31 \begin{tabular}{|c|c|c|c|} \hline \multirow{2}{*}{ UNITS } & \multirow{2}{*}{ Whole Units } & \multicolumn{2}{|c|}{ Equivalent Units } \\ \hline & & Direct Materials & Conversion \\ \hline \multicolumn{4}{|l|}{ Units charged to production: } \\ \hline \multicolumn{4}{|l|}{ Inventory in process. July 1} \\ \hline Received from Miling Department & & & \\ \hline \multicolumn{4}{|l|}{ Total units accounted for by the Sining Department } \\ \hline \multicolumn{4}{|l|}{ Unis to be assigned costs: } \\ \hline Inventory in peocess, Juy 1 (YS completed) & & , & \\ \hline Started and completed in July & & & + \\ \hline Transterred to Packaging Department in July & & 4 & \\ \hline \end{tabular} 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 Cost of Production Report \begin{tabular}{|l|l|} \hline Costs assigned to production: \\ \hline Inventory in process, July 1 \\ \hline Costs incurred in July \\ \hline Total costs accounted for by the Sifting Department \\ \hline Cost allocated to completed and \\ \hline partially completed units: \\ \hline Inventory in process, July 1 balance \\ \hline To complete inventory in process, July 1 \\ \hline Cost of completed July 1 work in process \\ \hline Started and completed in July \\ \hline Transferred to Packaging Department in July \\ \hline Inventory in process, July 31 \\ \hline Total costs assigned by the Sifting Department \end{tabular} ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable 610 Interest Revenue 125 Notes Receivable 126 Interest Receivable EXPENSES 131 Materials 510 Cost of Goods Sold 141 Work in Process-Milling Department 520 Wages Expense 142 Work in Process-Sifting Department 531 Selling Expense 143 Work in Process-Packaging Department 532 Insurance Expense 151 Factory Overhead-Milling Department 533 Utilities Expense 152 Factory Overhead-Sifting Department 534 Supplies Expense 153 Factory Overhead-Packaging Department 540 Administrative Expense 161 Finished Goods 561 Depreciation Expense-Factory 171 Supplies 590 Miscellaneous Expense 172 Prepaid Insurance 710 Interest Expense 173 Prepaid Expenes 181 Land 3. Determine the increase or decrease in the cost per equivalent unt from June fo July for direct materials and conversion costs. Enter all amounts as posibie numbers. Aound your answers to two decimal places. Direct materials: Conversion: 4. The cost of production report may be used as the basis for allocating product costs between and The report can also be used to control costs by holding each departiment head responsble for the units entering production and the costs incurred in the department. Amy diterences in unit product costs from one month to another, such as those in part (3), can be studed carefully and any significant differences imvestigated. White Diamond Flour Company manulactures flour by a series of three processes, beginning with wheat grain being introduced in the Mdling 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 followson July 1: The following costs were charged to Work in Process-Sithing Department during July: During July, 15,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,300 units, 34 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 equivalent unit answers to two decimal places. 2. Journalize the entries for costs transferred from Milling to Sitting and the costs transferred from Sifing to Packaging. Reter to the chart of accounts for the exact wording of the account tities. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Enter all amounts as positive numbers. Round your answers to fwo decimal places. 4. Discuss the uses of the cost of production report and the results of part (3). 2. Journalize the entries for costs transforred from Miling to Sitting and the costs transterred from Siting to Packaging. Fiefer to the chart of accounts for the exact wording of the account tities. CNOW journals do not use lines for joumal explanations. Every line on a joumal page is used for debit or credit entres. CNow journals wil automaticaly indent a cred. entry when a credit amount is entered