Question

Joshua Flour Company manufactures flour by a series of three processes, beginning 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 March 1: Work in Process-Sifting Department (3,200 units, 75% completed) $3,500 The following costs were charged to Work in Process-Sifting Department during March: Direct materials transferred from Milling Department: 14,500 units $51,400 Direct labor 13,325 Factory overhead 5,125 During March, 14,900 units of flour were completed. The balance of Work in Process-Sifting Department on March 31 was 2,800 units, 50% completed

Answer 1

Joshua Flour Company
Cost of Production Report-Sifting Department
For the Month Ended March 31
Units	Units	Equivalent Units of Production
Units charged to production:
Inventory in process, March 1	3200
Received from Milling Department	14500
Total units accounted for by the Sifting Department	17700
Units to be assigned cost:
Transferred to Packaging Department in March	14900	14900
Inventory in process, March 31 (50% x 2800)	2800	1400
Total units to be assigned cost	17700	16300
Costs
Unit costs:
Total costs for March in Sifting Department ($3500 + 51400 + 13325 + 5125)		73350
Total equivalent units		16300
Cost per equivalent unit		4.50
Costs charged to production:
Inventory in process, March 1		3500
Costs incurred in March ($51400 + 13325 + 5125)		69850
Total costs accounted for by the Sifting Department		73350
Costs allocated to completed and partially completed units:
Transferred to Packaging Department in March (14900 x $4.50)		67050
Inventory in process, March 31 (1400 x $4.50)		6300
Total costs assigned by the Sifting Department		73350