A1 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) $2,150Conversion (1,000x3/5 × $0.40) 240$2,390The 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 unitDirect laborFactory overhead$37,5754,5403,056During 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 Sitting Department for July2. Journalize the entries for costs transferred from Mling to Sitting and the costs transferred from Sitting to Packaging.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).

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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 Sitting Department for July 2. Journalize the entries for costs transferred from Mling to Sitting and the costs transferred from Sitting to Packaging. 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).

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 Sitting Department for July 2. Journalize the entries for costs transferred from Mling to Sitting and the costs transferred from Sitting to Packaging. 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).

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 5PB: Blue Ribbon Flour Company manufactures flour by a series of three processes, beginning in the...

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