nits and related costs; cost of production report; entries
Instructions
Chart of Accounts
Cost of Production Report
Journal
Final Questions
X
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 | |
(700 units, 3/5 completed): | |
Direct materials (700 × $2.05) | $1,435 |
Conversion (700 × 3/5 × $0.50) | 210 |
$1,645 |
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 | 5,339 |
During July, 17,000 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,500 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). cost of production report A report prepared periodically by a processing department, summarizing (1) the units for which the department is accountable and the disposition of those units and (2) the costs incurred by the department and the allocation of those costs between completed and incomplete production. ; entries Instructions none Chart of Accounts none Cost of Production Report none Journal none Final Questions none View Mode Selection X 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:
The following costs were charged to Work in Process-Sifting Department during July:
During July, 17,000 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,500 units, 4/5 completed.
none X Chart of Accounts
none X Cost of Production Report 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.
Points: Feedback Check My Work Explanation
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Solution 1:
White Diamond Flour Company | |||
Sifting Department | |||
Computation of Equivalent unit (FIFO) | |||
Particulars | Physical units | Material | Conversion |
Units to be accounted for: | |||
Beginning WIP Inventory | 700 | ||
Units started this period | 17800 | ||
Total unit to be accounted for | 18500 | ||
Units Accounted for: | |||
Units completed and transferred out | |||
From
beginning inventory Material - 0% Conversion - 2/5 |
700 | 0 | 280 |
Started and completed currently | 16300 | 16300 | 16300 |
Units in
ending WIP Material - 100% Conversion - 4/5 |
1500 | 1500 | 1200 |
Total units accounted for | 18500 | 17800 | 17780 |
White Diamond Flour Company | |||
Sifting Department | |||
Computation of Cost per Equivalent unit | |||
Particulars | Total cost | Material | Conversion |
Current period cost | $48,049.00 | $38,270.00 | $9,779.00 |
Equivalent units | 17800 | 17780 | |
Cost per equivalent unit | $2.15 | $0.55 |
White Diamond Flour Company | |||
Sifting Department | |||
Producton cost report - FIFO | |||
Particulars | Total cost | Material | Conversion |
Cost Accounted for : | |||
Cost assigned to unit transferred out: | |||
Cost from beginning WIP Inventory | $1,645 | $1,435 | $210 |
Current cost added to complete beginning WIP: | |||
Material | $0 | $0 | |
Conversion (280 * $0.55) | $154 | $154 | |
Total Cost from beginning inventory | $1,799 | $1,435 | $364 |
Current cost of unit started and completed: | |||
Material (16300*$2.15) | $35,045 | $35,045 | |
Conversion (16300*$0.55) | $8,965 | $8,965 | |
Total cost of unit started and completed | $44,010 | $35,045 | $8,965 |
Total cost of unit transferred out | $45,809 | $36,480 | $9,329 |
Cost assigned to ending WIP: | |||
Material (1500*$2.15) | $3,225 | $3,225 | |
Conversion (1200*$0.55) | $660 | $660 | |
Total ending WIP inventory | $3,885 | $3,225 | $660 |
Total cost accounted for | $49,694 | $39,705 | $9,989 |
Solution 2:
Journal Entries - White Diamond Flour Company | |||
Date | Particulars | Debit | Credit |
July | Work In Process - Sifting Department Dr | $38,270.00 | |
To Work In Process - Milling Department | $38,270.00 | ||
(Being cost transferred from milling to sifting department) | |||
July | Work In Process - Packaging Department Dr | $45,809.00 | |
To Work In Process - Sifting Department | $45,809.00 | ||
(Being cost transferred from sifting to packaging department) |
Solution 3:
Particulars | Direct material | Conversion |
Cost per equivalent unit: | ||
From current period | $2.15 | $0.55 |
From beginning period | $2.05 | $0.50 |
Increase (decrease) | $0.10 | $0.05 |
Solution 4:
The cost of production report may be used as the basis for allocating product costs between Units completed & Transferred and Units in ending WIP. 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.
nits and related costs; cost of production report; entries Instructions Chart of Accounts Cost of Production...
Equivalent units and related costs; cost of production report; entries Instructions Chart of Accounts Cost of Production Report Journal Final Questions X 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...
Equivalent units and related costs; cost of production report; entries Instructions Chart of Accounts ! Cost of Production Report Journal ! Final Questions 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...
Equivalent units and related costs; cost of production report; entries Instructions Chart of Accounts Cost of Production Report Journal Final Questions 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 Miling Department, the materials pass through the Sitting 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...
Instructions Chart of Accounts Cost of Production Report Journal 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 (700 units, 3/5 completed): Direct materials (700 * $2,35) $1,645 Conversion...
Chapter 20 Exercises and Prot Calculator Print Item eBook Equivalent units and related costs; cost of production report; entries Instructions Chart of Accounts Cost of Production Report Journal Final Questions Instructions White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced i 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...
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mentandovokeretakeAssignmentSession Locator assignment-takeinprogress=false Book Calculat Equivalent units and related costs; cost of production structions Chart of Accounts Cost of Production Report Journal Final Ques 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...
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 (700 units, 3/5 completed): Direct materials (700 × $2.35) $1,645 Conversion (700 × 3/5 × $0.30) 126 $1,771 The following costs...
etween June and July rease in the cost per equivalent unit for direct matenials and PR 17-3A Equivalent units and related costs; cost entries White Diamond Flour Com of production report. Obi, 2,3,4 2. Transferred to packagi $40,1s3 materials pass throusgh Dept., W Dept. ith wheat grain being introduced pany manufactures flour by a series of three processes, beginning ced in the Milling Department. From the Milling Department, the packaged refined flour was as follows on July 1 s pass...
Go to pg. 877 lį AA PR 17-3A Equivalent units and related costs; cost of production report; entries Obj. 2, 3, 4 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. EXCEL TEMPLATE The balance in the account Work in Process—Sifting Department was as follows on July 1: Work...
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
(900 units, 3/5 completed):
Direct materials (900 × $2.05)
$1,845
Conversion (900 × 3/5 × $0.40)
216
$2,061
The following costs...