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) on July 1 Cost Source Dollar Amount Direct Materials (900 x $3.15) $2,835 Conversion (900 x 3/5 x $0.30) 162 Total Materials and Conversion 2,997 The following costs were charged to Work in Process—Sifting Department during July: Work in Process—Sifting Department Cost Source Dollar Amount Direct materials transferred from Milling Department: 15,700 units at $2.30 a unit $36,110 Direct Labor 5,420 Factory Overhead 2,384 During July, 15,500 units of flour were completed. Work in Process—Sifting Department on July 31 was 1,100 units, 4/5 completed. Instructions Prepare a cost of production report for the Sifting Department for July.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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) on July 1 |
|
|
Cost Source |
Dollar Amount |
|
Direct Materials (900 x $3.15) |
$2,835 |
|
Conversion (900 x 3/5 x $0.30) |
162 |
|
Total Materials and Conversion |
2,997 |
The following costs were charged to Work in Process—Sifting Department during July:
|
Work in Process—Sifting Department |
|
|
Cost Source |
Dollar Amount |
|
Direct materials transferred from Milling Department: 15,700 units at $2.30 a unit |
$36,110 |
|
Direct Labor |
5,420 |
|
Factory |
2,384 |
During July, 15,500 units of flour were completed. Work in Process—Sifting Department on July 31 was 1,100 units, 4/5 completed.
Instructions
- Prepare a cost of production report for the Sifting Department for July.
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Sifting to Packaging.
by Bartleby ExpertI need to finish with these three questions and need help please.
Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging.
2. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs.
3.Discuss the uses of the cost of production report and the results of part (c).
by Bartleby ExpertSo I have to finish the Cost of production Report, as you can see I need help with the cost sections below on my report.
See attached photo of my work in progress for this report
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Insert
Units
Units charged to production
Inventory in Process, July 1
White Diamond Flour Company
Cost of Production Report-Sifting Department
For the Month Ended July 31
[Whole Units]
[Equivalent Units]
Conversion
Received from Milling Department
Total units accounted for by the
Miling Dept
Units to be assigned costs:
Inventory in process, July 1 (1-3/5
completed)
Started and completed in July
Transferred to packaging Dept in July
Inventory in process, July 31 (4/5
completed)
Total units to be assigned costs
Costs
Cost per equivalent unit:
Current period costs
Total equivalent units
Cost per equivalent units
Costs assigned to Production:
Inventory in Process, July 1
Costs incurred in July
Total costs accounted for by the
Sifting Dept
Costs allocated to completed and
partially completed units
Inventory in process, July 1-
Balance
Table Chart Text
SEP
14
900
15,700
16,600
900
14,600
15,500
1,100
16,600
To complete inventory in process, July 1
Cost of completed July WIP
Started and completed in July
Transferred to packaging Dept in July
Inventory in Process, July 31
Total costs assigned by the Sifting department
Direct Materials
0
14,600
14,600
1,100
15,700
36,110
15,700
2.30
Shape Media Comment
0
360
14,600
14,960
880
15,840
7,804
15,840
0.49
O
(900*2/5)
1,260
43.914
45,174
1,260
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by Bartleby Expert
