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 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-Sifting Department (900 units, 3/5 completed): Direct materials (900 x $2.05) $1,845 Conversion (900x 3/5 x $0.40) 216 $2,061 The following costs were charged to Work in Process-Sitting Department during July: Direct materials transferred from Milling Department: 15,700 units at $2.15 a unit Direct labor Factory overhead $33,755 4,420 2,708 During July, 15,500 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 Sifting Department for July. If an amount is zero, enter "0". Round your cost per unit answers to the nearest cent 2. Joumalize the entries for costs transferred from Milling to Sifting 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 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 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). Cost of Production Report Cost per equivalent unit: Costs COSTS Direct Materials Conversion Total 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 Started and completed in July $ $ $ 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 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 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 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 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. Round your answers to the nearest cent Direct materials: S Conversion $ Increase Decrease 4. Discuss the uses of the cost of production re 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 any significant differences investigated. 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. 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 used to control costs by holding each department head responsible for the units entering proc one month to another, such as those in part (3), can be studied carefully and any significant Work in Process Direct Materials and The report can also be incurred in the department. Any differences in unit product costs from ed. 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: S 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 and used to control costs by holding each department head responsible for the units entering production and the costs incurred in p one month to another, such as those in part (3), can be studied carefully and any significant differences investigated. The report can also be ferences in unit product costs from Finished Goods Cost of Goods Sold