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 (800 units, 3/5 completed): Direct materials (800 × $2.05) $1,640 Conversion (800 × 3/5 × $0.50) 240 $1,880 The following costs were charged to Work in Process-Sifting Department during July: Direct materials transferred from Milling Department: 17,800 units at $2.15 a unit $38,270 Direct labor 4,440 Factory overhead 5,361 During July, 17,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,500 units, 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 equivalent unit answers to two decimal places. 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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Enter all amounts as positive numbers. Round your answers to two decimal places.

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Description: 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, emerg

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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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 (800 units, 3/5 completed):
Direct materials (800 × $2.05)	$1,640
Conversion (800 × 3/5 × $0.50)	240
	$1,880

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

Direct materials transferred from Milling Department:
17,800 units at $2.15 a unit	$38,270
Direct labor	4,440
Factory overhead	5,361

During July, 17,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,500 units, 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 equivalent unit answers to two decimal places.
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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
3.	Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Enter all amounts as positive numbers. Round your answers to two decimal places.
4.	Discuss the uses of the cost of production report and the results of part (3).

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