Instructions x White Diamond Flour Company manufactures four 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 Shing Department was as follows on July 1: Work in Process-Sitting Department (700 units, 35 completed): Direct materials (700 $2.35) $1,645 Conversion (700 3/5 * $0.30) 126 $1,771 The following costs were charged to Work in Processing Department during July Direct materials transferred from Miting Department 15.700 units at $2.45 a unit $38,465 Direct labor 4,480 Instructions 15,700 units at $2.45 a unit $38,465 Direct labor 4,480 Factory overhead 1,022 During July, 15,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,300 units, completed Required: 1. Prepare a cost of production report for the Sifting Department for July. It required, round your cost per equivalent unit answers to two decimal places. If an amount is zero, enter zero o. 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. 3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. If required, round your answers to two decimal places 4. Discuss the uses of the cost of production report and the results of part (3). Chart of Accounts White Diamond Flour Company General Ledger ASSETS REVENUE 110 Cash 121 Accounts Receivable 410 Sales 610 Interest Revenue 125 Notes Receivable 126 Interest Receivable EXPENSES 131 Materials 510 Cost of Goods Sold 141 Work in Process-Milling Department 142 Work in Process-Sifting Department 143 Work in Process-Packaging Department 151 Factory Overhead-Milling Department 152 Factory Overhead-Sifting Department 153 Factory Overhead-Packaging Department 520 Wages Expense 531 Selling Expense 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expense 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 Cost of Production Report 1. Prepare a cost of production report for the Sitting Department for July required, round your cost per equivalent und answers to two decimal places. If an amount is zero, enter zerov WHITE DIAMOND FLOUR COMPANY Cost of Production Report-Sitting 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 Equivalent units and related costs; cost of production report; entries Instructions Chart of Accounts Cost of Production Report Journal HI Cost of Production Report 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: I 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 Instructions Chart of Accounts Cost of Production Report Journal Cost of Production Report COSTS Costs Direct Materials Conversion Total Cost per equivalent unit: Total costs for July in Sifting Department $ S > I Total equivalent units Cost per equivalent unit $ Costs assigned to production: Inventory in process, July 1 S Costs incurred in July Total costs accounted for by the Sifting Department Equivalent units and related costs; cost of production report; entries Instructions Chart of Accounts Cost of Production Report Journal H Cost of Production Report USISWICO Wory Total costs accounted for by the Sifting Department $ Cost 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 Sitting Department Journal X 2 Journalize the entries for costs transferred from Miling to Sitting and the costs transferred from Silling to Packaging. Refer to the Chart of Accounts for correct wording of accounts PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST, RIT DENT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 Final Questions 3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. W required, round your answers to two decimal places Direct materials: S Conversion: 5 and 4. The cost of production report may be used as the basis for allocating product costs between 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