Instructions White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Miling Department. From the Milling Department, the materials pass through the Sitting and Packaging departments, emerging as packaged refined flour The balance in the account Work in Process-Sitting Department was as follows on July 1: Work in Process-Sitting Department (700 units. 3/5 completed) Direct materials (700 $2.05) $1,435 Conversion (700* 3/8 50.60) 210 $1,645 The following costs were charged to Work in Procese-Sifting Department during July Direct materials transferred from Milling Department 17.800 units at $2.15 a unit $38,270 Direct labor 4,440 Instructions Direct materials transferred from Milling Department: 17,800 units at $2.15 a unit $38,270 Direct labor 4,440 Factory overhead 5,339 During July, 17,000 units of flour were completed. Work in Process-Sitting Department on July 31 was 1,500 units, 4/5 completed, Required: 1. Prepare a cost of production report for the Sitting Department for Jy 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 Muling to Sitting and the costs transferred from Sitting to Packaging. Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use Nnes 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 ontries. CNOW journals ww automatically indent a credit entry when a credit amount is entered. Use the date July 31 for at journal entries. 3. Determine the increase or decrease in the cost per equivalent unit from June to buy 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) Journal 2 Journalize the entries for costs transferred from Milling to Siffing 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 debut or credit entries. Do not add explanations or skipa between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Use the date May 31 for at journal entries. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 3 Cost of Production Report 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 S $ S 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 5 S Inventory in process, July 31 Total costs assigned by the Sifting Department 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: 5 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 costs between Y and The report can also be used to control costs by holding och 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 carolully and any significant differences investigated