Question

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 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-Sifting Department (900 units, 3/5 completed) Direct materials (900 $2.05) $1,845 Conversion (900 x 3/5 * $0.40) 216 $2,061 The following costs were charged to Work in Process-Sitting Department during July Direct materials transferred from Milling Department 15,700 units at $2.15 a unit $33.755 Dired labor 4,420 Factory overhead 2,70B During July, 15,500 units of four were completed. Work in Process-siting 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. If an amount is zero, enter '0" Round your cost per unir answers to the nearest cent. 2. Journalize the entries for costs transferred from Mwing to Sitting and the cost transferred from Silting lo Packaging Refer to the chart of amounts for the event of the arruntas CNW Inumai celines for snares ne inamna aminations in a

Answer 1

Direct Materials Conversion Costs Total Cost per equivalent unit: Total costs for July in Sifting Department Divided by Total equivalent units Cost per equivalent unit $33,755 15,700 $2.15 $7,128 15,840 $0.45 Inventory in process, July 1 Costs incurred in July Total costs accounted for by the Shifting Department $2,061 $40,883 S42,944 $0 $162 Costs 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 Conpleted in July Transferred to Packing Department in July Inventory in process, July 31 Total costs assigned by the Sifting Department $31,390 $6,570 $2,061 $162 $2,223 $37,960 $40.183 $2,761 S42,944 $2,365 $396