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 The following costs were charged to Work in Process Sifting Department during July Direct materials transferred from Milling 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 flour were completed Work in Process Sifting Department on July 31 was 1,300 units, 45 completed Required 1 Prepare a cost of production report for the Sifting Department for July If required, round your cost per equivalent unit answers to two decimal places If an amount is zero, enter zero 0 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) HART OF ACCOUNTS White Diamond Flour Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 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 161 Finished Goods 171 Supplies 172 Prepaid Insurance 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 1 Prepare a cost of production report for the Sifting Department for July If required, round your cost per equivalent unit answers to two decimal places If an amount is zero, enter zero 0 WHITE DIAMOND FLOUR COMPANY Cost of Production Report Sifting Department For the Month Ended July 31 UNITS Whole Units Equivalent 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 COSTS Costs Direct Materials Conversion Total Costs 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 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 Sifting Department 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 PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 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 Direct materials Conversion

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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

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 The following costs were charged to Work in Process-Sifting Department during July: Direct materials transferred from Milling 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 flour were completed. Work in Process-Sifting Department on July 31 was 1,300 units, 45 completed. Required: 1. Prepare a cost of production report for the Sifting Department for July. If required, round your cost per equivalent unit answers to two decimal places. If an amount is zero, enter zero 0. 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).

HART OF ACCOUNTS

White Diamond Flour Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
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
161	Finished Goods
171	Supplies
172	Prepaid Insurance
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

1. Prepare a cost of production report for the Sifting Department for July. If required, round your cost per equivalent unit answers to two decimal places. If an amount is zero, enter zero 0.

WHITE DIAMOND FLOUR COMPANY
Cost of Production Report-Sifting Department
For the Month Ended July 31
UNITS	Whole Units	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

COSTS

Costs

Direct Materials

Conversion

Total

Costs 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 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 Sifting Department

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.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE

DESCRIPTION

POST. REF.

DEBIT

CREDIT

ASSETS

LIABILITIES

EQUITY

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.