Instructions White Diamond Four Company manufactures flour by a series of three process, beginning with wheat grain being introduced in the Milling Department. From the Miling Department, the materials pass through the Sifting 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-Sifting Department (800 units, 3/5 completed) Direct materials (800 $2.25) $1,800 Conversion (800 35 * $0.40) 192 $1,992 The following costs were charged to Work in Process Sifting Department during July: Direct materials transferred from Miling Department: 16,400 units at $2.35 a unt $38,540 Direct labor 4480 Factory overhead 2.945 Check My Work 5 more Check My Work unes remaining. Previous 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 Sitting 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 COSTS Direct Materials Conversion Cost per equivalent unt: 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 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 Cost of Production Report 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 Sifting Department Journal 2 Journalize the entries for costs transferred from Miling to sifting 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 lines for spaces or journal explanations. Every ine on a journal page is used for debitor credit entries. Do not add explanations or skip a ine between Journal entries. CNOW journals will automaticaly indent a credit entry when a credit amount is entered. Use the date July 31 for al Journal entries. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 3. Determine the increase or damase in the cost per equivalent unit from June to y for dinnet materials and conversion costs. Round your answers to the nearest cent Direct materials: 5 Conversion: $ 4. Discuss the use 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 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 ary significant differences investigated 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 Miling 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 Siting Department (800 units, 3/5 completed) Direct materials (800 x $225) $1,800 Conversion (800 x 3/5 * $0.40) 192 $1,992 The following costs were charged to Work in Process-Sitting Department during July Direct materials transferred from Miling Department 16,400 units at $2.35 a unit $38.540 Direct labor 4.480 Factory overhead 2.045 During July 18,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 4/5 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or joumal 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 or 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)