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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 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:

Work in Process-Sifting Department
(1,000 units, 3/5 completed):
Direct materials (1,000 × $2.15) $2,150
Conversion (1,000 × 3/5 × $0.40) 240
$2,390

The following costs were charged to Work in Process-Sifting Department during July:

Direct materials transferred from Milling Department:
16,700 units at $2.25 a unit $37,575
Direct labor 4,540
Factory overhead 3,056

During July, 16,600 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 4/5 completed.

Required:
1. Prepare a cost of production report for the Sifting Department for July. If an amount is zero, enter "0". 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 Milling to Sifting and the costs transferred from Sifting to Packaging. Refer to the Chart of Accounts for correct wording of account titles. 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).

Instructions 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 Work in Process-Sifting Department (1,000 units, 3/5 completed) Direct materials (1,000 x $2.15) $2.150 Conversion (1,000 x 35 0.40 240 $2,390 The following costs were charged to Work in Process-Sifting Department during July Direct materials transferred from Milling Department: 16,700 units at $2.25 a unit Direct labor Factory overhead $37,575 4,540 3,056During July, 16,600 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 415 completed. Required 1. Prepare a cost of production report for the Siting Department for July. if an amount is zero, enter o Round your cost per unit answers to the nearest cent and inaí answers to the nearest dollar amount nt and tinal answers to the ne 2. Joumalize the entries for costs transferred from Milling to Siting and the costs transferred from Siting to Packaging. Refer to the Chart ot Accounts tor correct wording or account tities. 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 ASSETS REVENUE 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 141 Work in Process-Milling 142 Work in Process-Sifting 143 Work in Process-Packaging 151 Factory Overhead-Milling 152 Factory Overhead-Sifting 153 Factory Overhead-Packaging 161 Finished Goods 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 640 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest ExpenseCost of Production Report . Prepare a cost of production report for the Sifting Department for July. Ifan 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 tor by the Siting Department Units to be assigned costs Inventory in process, July 1 (315 completed) Started and completed in July Transferred to Packaging Department in July Inventory in process, July 31 (4/5 completed)Cost of Production Report 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 Costs allocated to completed and partially completed units: Inventory in process, July 1-balanceCosts incurred in July Total costs accounted for by the Sifting Department Costs allocated to completed and partially completed units Inventory in process, July 1-balance To complete inventory in process, July1 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 DepartmentJournal 2. Journalize the entries for costs transferred from Miling to Sifting and the costs transferred from Sifting to Packaging. Refer to the Chart of Accounts for correct wording of account titles. Use the date July 31 for alf jounal entries. PAGE 10 JOURNAL DATE DESCRIPTION POST. REF DEBIT CREDITFinal Questions 3. Determine the increase or decrease in the cost per equivaient unit from June to July for direct materiais and conversion costs. Round your answers to the nearest cent. Direct materials: S Conversion 4. The cost of production report may be used as the basis for allocating product costs between 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. and .The report can also be used to control costs by

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