Hi, Need help with this one. Thx White Diamond Flour Company manufactures flour

Question

Hi, Need help with this one. Thx

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 x $2.25) $2,250 Conversion (1,000 x 3/5 x $0.40 240 $2,490 The following costs were charged to Work in Process-Sifting Department during July: Direct materials transferred from Milling Department: 15,400 units at $2.35 a unit Direct labor Factory overhead $36,190 4,420 2,546 During July, 14,800 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,600 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 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).

Explanation / Answer

Solution 1:

Solution 2:

Solution 3:

Change in direct material cost per equivalent unit from june to july = $2.35 - $2.25 = $0.10 increase

Change in coversion cost per equivalent unit from june to july = $0.45 - $0.40 = $0.05 increase

Solution 4:

The cost of production report may be used as the basis for allocating product costs between completed units and Ending work in process. 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.

White Diamond Flour Company Sifting Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 1000 Units started this period 15400 Total unit to be accounted for 16400 Units Accounted for: Units completed and transferred out From beginning inventory
Material - 0%
Conversion - 2/5 1000 0 400 Started and completed currently 13800 13800 13800 Units in ending WIP
Material - 100%
Conversion - 4/5 1600 1600 1280 Total units accounted for 16400 15400 15480

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.