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Equivalent units and related costs; cost of production report; entries Instructions Chart of Accounts Cost of production Report Journal Final Questions Instructions 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 (800 units, 3/5 completed): Direct materials (800 x $2.15) $1,720 Conversion (800 3/5 * $0.50) 240 $1,960 The following costs were charged to Work in Process-Sifting Department during July Direct materials transferred from Milling Department: 15,500 units at $2/25 a unit $34,875 Direct labor 4,540 Factory overhead 4,018 The following costs were charged to Work in Process-Sifting Department during July: Direct materials transferred from Milling Department: 15,500 units at $2.25 a unit $34,875 Direct labor 4.540 Factory overhead 4.018 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 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 the exact wording of the account titles. CNOW journa/s do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW Journals will automatically indent a credit entry when a credit amount is entered. 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). White Diamond Flour Company General Ledger 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-Factory 171 Supplies 590 Miscellaneous Expense 172 Prepaid Insurance 710 Interest Expense 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory 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 Previous Ne Check My Work 3 more Check My Work uses remaining. Cost of Production Report 1. Prepare a cost of production report for the Sifting Department for July. If an amount is zero enter om Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount. WHITE DIAMOND FLOUR COMPANY Cost of Production Report-Sifting Department For the Month Ended July 31 Equivalent Units UNITS whole Units Direct Materials Conversion Units charged to production: Inventory in process, July 1 Received from Milling Department Total units accounted for by the Sifting Department Units to be assigned costs: Inventory in process, July 1 (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 eBook COSTS costs Direct Materials Conversion Total Cost per equivalent unit: Total costs for July in Sifting Department S S Total equivalent units Cost per equivalent unit S $ Costs assigned to production: Inventory in process, July 1 Costs incurred in July Total costs accounted for by the Sifting Department Costs allocated to completed and partially completed units. Inventory in process, July 1-balance $ To complete inventory in process, July 1 $ Cost of completed July 1 work in process $ Started and completed in July Transferred to Packaging Department in July $ Inventory in process, July 31 Total costs assigned by the Sifting Department $ Check My Work 3 more Check My Work uses remaining Previous Next Equivalent units and related costs; cost of production report: entries Instructions Chart O Accounts Castor Production Report Journal Final muasions Journal 2. Joumalize the entries for costs transferred from Milling to Sitting and the costs transferred from Sifting to Packaging. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Use the date July 31 for all journal entries. PAGE 10 JOURNAL ACCOUNTING EQUATION POST. REF DESCRIPTION DEBIT CREDIT DATE ASSETS LIABILITIES EQUITY 1 2 3 4 Previous Next Check My Work 3 more Check My Work uses remaining. ETTO eBook Equivalent units and related costs; cost of production report; entries instructions Chart of Accounts Cost of Production Report Journal Final Questions Final Questions 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. Direct materials: $ Conversion: 4. Discuss the uses of the cost of production report and the results of part (3). SUP The cost of production report may be used 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 incurred in the department Any differences in unit product costs from one month to another, such as those in part (3), can be studied carefully and any significant differences investigated