White Diamond Four Company manufactures flour by a series of three processes, beginning with whont grain being introduced in the Milling Department. From the Miling Department, the materials pass through the Sitting and Packaging departments, emerging as packaged refined flour, The balance in the account Work in Proopas-sining Department was as follows on Juy 1: Work in Process-Sifting Department (800 units, 3/5 completed): Direct materials (800 52.15) 51,720 Conversion (800 * 3/5* $0.50) 240 $1.960 The following costs were charged to Work in Process-Sitting Department during July Direct materials transferred from Miling Department: 15,500 units at $2 25 a unit $34,875 Direct labor 4.540 15,500 units at $2.25 a unit $34,875 Direct labor 4,540 Factory overhead 4,018 During Juy, 15,000 units of flour were completed. Work In Process-Sitting Department on July 31 was 1,300 units, 4/5 completed. Required: 1. Prepare a cost of production report for the Sitting Department for Jay an amount is zero, entero* Round your cost per unit answers to the nearest cent and final answers to the nearest dollar amount. 2. Journalize the entries for costs transferred from Miling to Siting and the costs transferred from Siming 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 credir entries. Do not add explanations or skip a line between journal entries. CNOW Journals wie 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) CHART OF ACCOUNTS White Diamond Flour Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue EXPENSES 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 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 161 Finished Goods Jo 161 Finished Goods 561 Depreciation Expense-Factory 590 Miscellaneous Expense 171 Supplies 172 Prepaid Insurance 710 Interest Expense 173 Prepaid Expenses ac 181 Land lind 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 1 2 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary 1. Prepare a cost of production report for the Sitting Department for July an amount is zero, enter O. 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 Report-Sifting Department For the Month Ended July 31 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 Sitting Department Units to be assigned costs: Inventory in process, July 1 (3/5 completed) Cast of Production Report 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 Sitting Department $ Total equivalent units Cost per equivalent une Instructions Cost of Production Report Cost per equivalent une Costs assigned to production: Inventory in process, July 1 $ Costs incurred in July Total costs accounted for by the Sitting Department Conts 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 Transterred to Packaging Department in July Inventory in process, July 31 Total costs assigned by the Sitting Department 2. Journature the entries for costs transformed from Maring to Sming and the costs transferred from Sting to Packaging. Hefer to the chart of accounts for the exact wording of the account ones. CNOW joumals do not use lines for spaces or journal explanations. Every ine on a journal page is used for debut or credit entries. Do not add explanations or skip Ine between journal entries. CNOW youmaks will automatically inderit a credit entry when a credit amount is entered. Use the date ay 31 for all youmal entries. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 2 1 3. Determine the increase or decrease in the cost per equivalent curve from tune to wuy for direct materials and conversion costs. Round your answers to the nearest cent. Direct materiais: S Conversion: S and 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 alocating 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 those in part (3), can be studied carefully and any significant differences investigated