Instructions Chart of Accounts Cost of Production Report Journal 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 (700 units, 3/5 completed): Direct materials (700 * $2,35) $1,645 Conversion (700 * 3/5* $0.30) 126 $1.771 Chart of Accounts CHART OF ACCOUNTS ling White Diamond Flour Company ined General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 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 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 Chart of Accounts 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 590 Miscelaneous Expense 710 Interest Expense 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 Cost of Production Report 1. Prepare a cost of production report for the Sitting Department for July nearest cent and final answers to the nearest dollar amount. an amount is zero, entor 0 Hound your cost per unit answers to the 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 Cost of Production Report COSTS Direct Materials Conversion Total Cost per equivalent unit: Total costs for July in Sifting Department Total equivalent units Cost per equivalent unit Costs assigned to production: Inventory in process, July 1 Costs incurred in July Total costs accounted for by the Sitting 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 Sting Department Journal 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 joumal entries PAGE 10 JOURNAL DESCRIPTION POST, RER DEBIT Instructions Chart of Accounts Cost of Production Report Journal 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. 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 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. Chart of Accounts Cost of Production Report Journa Instructions The following costs were charged to Work in Process-Sitting Department during July Drect materials transferred from Miling Department 15,700 units at $2.45 a unit $38,465 Direct labor 4,480 Factory overhead 1,022 During July 15,100 units of four were completed. Work in Process-Sitting Department on July 31 was 1,300 units, 45 completed Required: 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 2. Journalize the entries for costs transferred from Milling to Sitting and the costs transferred from Sitting to Packaging. Refer to the Chart of Accounts for correct wording of account titles. Use the date July 31 for al 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)