cost of production report

White Diamond Flour Company manulactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Dopartinent. From the Ming Department, the materials pass through the Silting and Packaging departments, omerping as packaged refined flouf. The balance in the account Work in Process-Siting Department was as follows on July 1: The following costs were charged to Work in Process.Sitting Department during July: Durina Julv. 15.100 units of flour were comcleted. Work in Process-Sittina Deoartment on Julv, 31 was 1.300 units. 4/5 comoleted. During July, 15,100 units of flour were completed. Work in Process-Sitting Department on July 31 was 1,300 units, 4/5 completed. Required: 1. Prepare a cost of production report for the Sitting Department for July. If an amount is zero, onter "O". Round your cost per unit answors to the nearest cent and final answers to the nearest dollar amount. 2. Joumalize the entries for costs transferred from Muling to Sitting and the costs transferred from Sitting to Packaging. Fefor to the chart of accounts for the exact wording of the account bitles. CNOW journals do not use lines for spaces or journal explanations. Every line an a journal page is used for debit or credit entries. Do not add explanations or skip a line betwoen joumal entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered. Use the date July 31 for all joumal entries. 3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Found your answers to the nearest cent. 4. Discuss the uses of the cost of production report and the results of part (3). hart of Accounts White Diamond Flour Company General Ledger \begin{tabular}{ll} 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 Expenses \\ 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 Expenses \\ 161 Finished Goods & 561 Depreciation Expense-Fact \\ 171 Supplies & 590 Miscellaneous Expense \\ 172 Prepaid Insurance & 710 Interest Expense \\ 173 Prepaid Expenses & \\ 10 - .. & \\ \hline \end{tabular} 172 Prepaid Insurance 710 Interest Expense 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 1. Prepare a cost of production report for the Sitting Department for July. If an amount is zero, enter "o". Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount. Equivalent units and related costs; cost of production report; entries \begin{tabular}{|l|l|l|l|} \hline Total equivalent units \\ \hline Cost per equivalent unit \\ \hline Costs assigned to production: \\ \hline Inventory in process, July 1 & \\ \hline Costs incurred in July \\ \hline Total costs accounted for by the Sitting Department & & \\ \hline Costs allocated to completed and 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 & \\ \hline \end{tabular} 2. Joumalize the entries for costs transferred from Moling to Sitting and the cosis transferred from Sitting to Packaging. Aefer to the chart of accounts for the exact warding of the nccount tiles. CNOW foumais do not use lines for spaces or joumal explanations. Every line on a joumal page is used for deble or credit antrios. Do not add explanatians or skip a fine between joumal entries. CNOW pumals will automadically indent a credit entry when a credit amount is entered. Use the date July 31 for all foumat entries. 3. Dotermine the increase or decrease in the cost per equivalent unit from June to July for direct materials and coriversian costs. Round your answers to the nearest cent Direct materials: Conversion: 4. Discuss the uses of the cost of productlon report and the result of part (3). 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 department head responsible for the units entering production and the costs incurted in the department. Any differences in unit product costs fro one month to another, such as those in part (3), can be studied carefully and any significant differences investigated