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, 2016:Work in Process-Sifting Department(800 units, completed):Direct materials (800 $2.05) $1,640Conversion (800 $0.50) 240$1,880The following costs were charged to Work in Process-Sifting Department during July:Direct materials transferred from Milling Department: 17,800 units at $2.15 a unit $38,270Direct labor 4,440Factory overhead 5,361During July, 17,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,500 units, completed.Required:1. Prepare a cost of production report for the Sifting Department for July.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.4. Discuss the uses of the cost of production report and

the results of part (3).

ASSETS REVENUE 110 Cash 121 Accounts Receivable 410 Sales 610 Interest Revenue 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 EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Eamings 351 Dividends 390 Income Summary Check My Work 3 more Check My Work uses remaining of Production Report Journal Instructions Final Questions White mond our company manufactures four by a series of three processes, beginning with wheat grain being introduced in the Miling Department. From 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, 2016 Department Work in Process Sitting Department (800 units, completed Direct materials (800 $2.05) $1.640 Conversion (300 $ 50.50) 240 $1.880 The following costs were charged to Work in Process-Sitting Department during July Direct material transferred from Milling Department 17 300 units at $2.15 unit $38 270 Direct labor Factory overhead 5.36 During July 17,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1.500 units, completed Required: 1. Prepare a cost of production report for the Sifting Department for Awly. 2. Journal them es for cost transferred from Milling to Sitting and the cost transferred from Sting to act Refer to the Chart of Accounts for correct wording of account bitles. 3. Determine the increase or decrease in the cost revalent it from Ame to Ally for direct materials and conversion costs 4. Discuss the use of the cost of production report and the results of purt (3 Check My Work more Check My Work uses remaining Previous 1. Prepare a cost of production report for the Sitting Department for July WHITE DIAMOND FLOUR COMPANY Cost of Production Report-Sifting Department For the Month Ended July 31, 2016 Equivalent Units UNITS Whole Units Direct Materials Conversion Units charged to production: Inventory in process, July 1 800 Received from Milling Department 17,800 Total units accounted for by the Sifting Department 18,600 Units to be assigned costs: Inventory in process, July 1 (f completed) 800 320 Started and completed in July 16,300 16,300 16,300 Transferred to Packaging Department in July 17.100 16,300 16.620 Inventory in process, July 31 ( 1,500 300 completed) 1,500 17,800 18.600 Total units to be assigned costs 16.920 Total units to be assigned costs 18,600 17 800 16.920 COSTS Costs Direct Materials Conversion Costs per valent Total cost for July insing Department $38.720 Total equivalent units 17.800 16.920 Cost per equivalent unit Costs assigned to production Inventory in process, July 1 Costs incurred in July Total cost accounted for by the Sitting 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 Jou Journal 2 Journalise the entries for costs transferred from Milling to Sitting and the cost transferred from Sifting to Packaging Refer to the Chart of Accounts for correct wording of accountitle PAGE 10 JOURNAL CREDIT Final Questions 3. Determine the increase or decrease in the cost per equivalent unit from June to fly for direct materials and conversion costs Direct materials: S Conversion: S 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 these in part can be studied carefully and any significant differences investigated. more Check My Work uses remaining Previous