White Diamond Four Company manufactures Siling and Packaging departments, ing by packaged e be th d o w eging deed in the Ming Department from the Departhe h The balance in the Work in Processing Depart o 2016 Work in Processing Department (800 completed Dremena 0 - 15151720 Convention (00 040) 192 The following costs were charged to work in Processing Depa n g Direct ed from get 16.700 5225 a unt 537 575 Direct labor During July 16.400 units of our were completed. Workin Department on July 11 was 1.100 units completed The following costs were charged to Work in Process Sitting Department during Ny Dired materials transferred from Mling Department 16,700 units at 52 25 a unit $37,575 Dured labor 4,540 Factory overhead 3,020 During July 16,400 units of flour were completed. Work in Process-Sitting Department on July 31 was 1.100 units completed Required: 1. Prepare a cost of production report for the Sitting Department for 2. Journalize the entries for costs transferred from Milling to Sitting and the cost transferred from Sitting to Packaging. Refer to the Chart of Accounts for correct wording of account titles. 3. Determine the increase or decrease in the cost c e ntut from June to July for direct materials and conversion costs. 4. Discuss the use of the cost of production report and the results of parts Chart of Accounts CHART OF ACCOUNTS CHART OF ACCOUNTS White Diamond Flour Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable 610 Interest Revenue 125 Notes Receivable 126 Interest Receivable EXPENSES 131 Materials 510 Cost of Goods Sold 520 Wages Expense 141 Work in Process-Milling Department 142 Work in Process-Sifting Department 531 Selling Expenses 143 Work in Process Packaging Department 532 Insurance Expense 533 Utilities Expense 151 Factory Overhead-Milling Department 152 Factory Overhead-Sifting Department 534 Supplies Expense 540 Administrative Expenses 153 Factory Overhead-Packaging Department 161 Finished Goods 561 Depreciation Expense-Factory 590 Miscellaneous Expense 171 Supplies 710 Interest Expense 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 171 Supplies 590 Miscellaneous Expense 710 Interest Expense 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Surnmary 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 Received from Milling Department Total units accounted for by the Sitting Department Units to be assigned costs: Inventory in process, July 16t completed) Started and completed in July Transferred to Packaging Department in July Inventory in process, July 31 $ completed) Total units to be assigned costs Costs COSTS Direct Materials Conversion Total Costs 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 TULI LUSS Tor July in Sitting 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 Sifting Department 2. Aumalize the entries for costs reserved from Mling to Suling and the cost an d bri ng to w in Refer to the Chart of Account for com i ng of accountles DESCRIPTION POST REF Final Questions 2. Determine the increase or decrease in the cost per equivalent unit from Aunetowy for dec a l and conversion costs Direct materials Conversions 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 those in part (3) can be studied carefully and any significant differences investigated 2. Journal theatres for cost transferred from Ming to Sitting and the cost transferred from iting to Packaging to the chart of Accounts for correct wording of accountries PAGE 10 OURNAL DET Final Questions Direct material Conversion: 4. The cost of production report may be used as the basis for allocating product costs between The report can be t racts by holding each department head responsible for the units entering production and the costs incurred in the department. Any differences in wit product costs from one month to another such as those in part 1 can be studied