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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 ProcessSifting Department was as follows on July :
Work in ProcessSifting Department
units, completed:
Direct materials times $ $
Conversion times times $
$
The following costs were charged to Work in ProcessSifting Department during July:
Direct materials transferred from Milling Department:
units at $ a unit $
Direct labor
Factory overhead
During July, units of flour were completed. Work in ProcessSifting Department on July was units, completed.
Required:
Prepare a cost of production report for the Sifting Department for July. If an amount is zero, enter Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.
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 for all journal entries.
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.
Discuss the uses of the cost of production report and the results of part
CHART OF ACCOUNTS
White Diamond Flour Company
General Ledger
ASSETS
Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Materials
Work in ProcessMilling Department
Work in ProcessSifting Department
Work in ProcessPackaging Department
Factory OverheadMilling Department
Factory OverheadSifting Department
Factory OverheadPackaging Department
Finished Goods
Supplies
Prepaid Insurance
Prepaid Expenses
Land
Factory
Accumulated DepreciationFactory
LIABILITIES
Accounts Payable
Utilities Payable
Notes Payable
Interest Payable
Wages Payable
EQUITY
Common Stock
Retained Earnings
Dividends
Income Summary
REVENUE
Sales
Interest Revenue
EXPENSES
Cost of Goods Sold
Wages Expense
Selling Expenses
Insurance Expense
Utilities Expense
Supplies Expense
Administrative Expenses
Depreciation ExpenseFactory
Miscellaneous Expense
Interest Expense
Prepare a cost of production report for the Sifting Department for July. If an amount is zero, enter Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount.
WHITE DIAMOND FLOUR COMPANY
Cost of Production ReportSifting Department
For the Month Ended July
UNITS Whole Units Equivalent Units
Direct Materials Conversion
Units charged to production:
Inventory in process, July
Received from Milling Department
Total units accounted for by the Sifting Department
Units to be assigned costs:
Inventory in process, July completed
Started and completed in July
Transferred to Packaging Department in July
Inventory in process, July completed
Total units to be assigned costs
Points:
Check My Work
Calculate equivalent units for direct materials and conversion costs.
COSTS Costs
Direct Materials Conversion Total
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
$
Costs incurred in July
Total costs accounted for by the Sifting Department
$
Costs allocated to completed and partially completed units:
Inventory in process, July balance
$
To complete inventory in process, July
$
$
Cost of completed July work in process
$
Started and completed in July
Transferred to Packaging Department in July
$
Inventory in process, July
Total costs assigned by the Sifting Department
$
Points:
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
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