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White Diamond Four Company manufactured flour by a series of three processes, beginning with what grain being introduced in the Miling 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 Process Sitting Department was as follows on lily 1 2016 Work in Processining Department (800 units, competed Direct materials (800 $215) $1.720 $0.40) 192 $1.912 White Diamond Flour Company manufactures flour by a series of the processes beginning with what 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 Processing Department was as follows on My 1 2016 Work in Processing Department (300 completed) Descala (8003215) $1.720 Conversion (300 50 401 190 The following costs were charged to Work in Processing Department duringus Direct material transferred from Ming Department 16,700 units at 5225 a unit $37.575 Direct labor Factory overhead During July 16,400 units of flour were completed. Work in Process Sifting Department on July 31 was 1,100 units, $ completed. Required: 1. Prepare a cost of production report for the Sifting Department for July 2. Journalire 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 fully for direct materials and conversion costs. 4. Discuss the uses of the cost of production report and the results of part (3 Cost of Production Report 7. 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 1. Prepare a cost of production report for the Sifting Department for July WHITE DIAMOND FLOUR COMPANY Cost of Production Report Sifting Department For the Month Ended July 31, 2016 UNITS Equivalent Units Whole Units Direct Materials Conversion Units charged to production: Inventory in process, July 1 July Received from Miling Department Total units accounted for by the Sitting Department Units to be assigned costs: Inventory in process, July 1($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 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 Transferred to Packaging Department in July Inventory in process, July 31 Total costs assigned by the Sitting Department Journal 2 Journaline the entries for costs transferred from Milling to Sitting and the costs transferred from Sitting to Packaging. Refer to the Chart of Accounts for correct wore PAGE 10 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT Final Question decrease in the courant une forma an co 4. The cost of production report may be used as the basis for locating product costs betwer each department head responsible for the units entering production and the costs incurred in the department. Any differences carefully and any significant differences investigated. t he report can also be used to control costs by holding out costs from one month to another, such as those in part (31 can be studied

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