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 rehried flour The balance in the account Work in Process-Sitting Department was as follows on July 1: Work in Process-Sitting Department (600 units, 315 completed): Direct materials (500 $2.25) $1,350 Conversion (600 * 3/5 $0.30) $1,458 The following costs were charged to Work in Process-Sitting Department during July Direct materials transferred from Miling Department 15,800 units at $2.35 a unit $37,130 Direct labor 4,520 Factory overhead 1,003 The following costs were charged to Work in Process-Sifting Department during July Direct materials transferred from Milling Department: 15,800 units at $2.35 a unit $37,130 Direct labor 4,520 Factory overhead 1,003 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 Sitting Department for July. If 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 or equivalent unit from June to July for direct materials and conversion costs. I required, round your answers to two decimal places. 4. Discuss the uses of the cost of production report and the results of part (3). 1. Prepare a cost of production report for the Sitting 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 Conversion Units charged to production: Inventory in process, July 1 Received from Miling 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 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 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 Sitting Department Journal 2. Journalize the entries for costs transferred from Ming to Sitting and the costs transferred from Sitting to Packaging. Refer to the Chart of Accounts for correct wording of accounts PAGE 10 ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY DATE DESCRIPTION REF. DEBIT CREDIT Final Questions 3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and consion costs. If required, round your answers to two decimal places Direct materials: $ Conversion: 4. The cost of production report may be used as the basis for allocating product outs 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. 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 rehried flour The balance in the account Work in Process-Sitting Department was as follows on July 1: Work in Process-Sitting Department (600 units, 315 completed): Direct materials (500 $2.25) $1,350 Conversion (600 * 3/5 $0.30) $1,458 The following costs were charged to Work in Process-Sitting Department during July Direct materials transferred from Miling Department 15,800 units at $2.35 a unit $37,130 Direct labor 4,520 Factory overhead 1,003 The following costs were charged to Work in Process-Sifting Department during July Direct materials transferred from Milling Department: 15,800 units at $2.35 a unit $37,130 Direct labor 4,520 Factory overhead 1,003 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 Sitting Department for July. If 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 or equivalent unit from June to July for direct materials and conversion costs. I required, round your answers to two decimal places. 4. Discuss the uses of the cost of production report and the results of part (3). 1. Prepare a cost of production report for the Sitting 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 Conversion Units charged to production: Inventory in process, July 1 Received from Miling 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 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 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 Sitting Department Journal 2. Journalize the entries for costs transferred from Ming to Sitting and the costs transferred from Sitting to Packaging. Refer to the Chart of Accounts for correct wording of accounts PAGE 10 ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY DATE DESCRIPTION REF. DEBIT CREDIT Final Questions 3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and consion costs. If required, round your answers to two decimal places Direct materials: $ Conversion: 4. The cost of production report may be used as the basis for allocating product outs 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