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 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, 2016:

Work in Process-Sifting Department
(900 units, completed):
Direct materials (900 x $2.05): $1,845
Conversion (900 x 0.60 x $0.40): 216
Total: $2,061

The following costs were charged to Work in Process-Sifting Department during July:
Direct materials transferred from Milling Department:

15,700 units at $2.15 a unit: $33,755
Direct Labor: 4,420
Factory Overhead: 2,708

During July, 15,500 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 4/5 completed.

Required:

a. Prepare a cost of production report for the Sifting Department for July.
b. Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging.

Answer 1

Answer:

journal entries are attached below

Explanation:

Answer 2

a. The preparation of the cost of production report for the Sifting Department for July is as follows:

                                              Direct materials      Conversion        Total

Beginning Work in Process          $1,845                  $216          $2,061

                                 (900 x $2.05)        (900 x 0.60 x $0.40)

Direct materials transferred from Milling Department:

15,700 units at $2.15 a unit:      $33,755                                 $33,755

Direct Labor:                                                            4,420           4,420

Factory Overhead:                                                  2,708           2,708

Total costs to be assigned     $35,600              $7,344      $42,944

Equivalent units of production:

                                              Direct materials      Conversion  

Completed in July                    15,500 (100%)        15,500 (100%)

Ending Work in Process             1,100  (100%             880 (4/5) or 80%

Total equivalent units            16,600                    16,380

Cost per equivalent unit:

Total costs                               $35,600                $7,344

Total equivalent units                16,600                 16,380

Cost per equivalent unit          $2.145                 $0.448 ($7,344/16,380)

Costs Assigned to:

                                              Direct materials      Conversion        Total

Units completed in July          $33,275                  $6,944          $40,219

                                            (15,500 x $2.145)  (15,500 x $0.448)

Ending inventory                        2,359.50              394.00          $2,753.50

                                            (1,100 x $2.145)        (880 x $0.448)

Total costs assigned            $35,634.50            $7,338         $42,972.50

b) The journalizing of the entries for costs transferred from Milling to Sifting and Sifting to Packaging is as follows:

Journal Entries:

Debit Work in Process (Sifting):

 Direct Materials $33,755

 Direct Labor $4,420

 Factory Overhead $2,708

Credit Work in Process (Milling) $40,883

• To record the transfer from Milling to Sifting Department.

Debit Work in Process (Packaging):

 Direct materials $33,275

 Conversion costs $6,944

Credit Work in Process (Sifting) $40,219

• To record the transfer from Sifting to Packaging Department.

Learn more about preparing cost of production reports at https://brainly.com/question/25950076