876 Chapter 18 Process Cost Systems Equivalent units and related costs; cost of production report; OBJ. 2, 3, 4 PR 18-3A entries processes, begin White Diamond Flour Company manufactures flour by a series of three From the Milling ng 2. Transferred to wheat being introduced in the M Departmen emerging Department, the materials pass through the Sifting and Packaging departments, Packaging Dept., $40,183 as packaged refined flour. follows on The balance in the account Work in Process-sifting Department was as July 1, 2016 Work in Process-sifting Department (900 units, 'scompleted): Direct materials (900 x$2.05) 1,845 Conversion (900 x x $0.40) 216 $2,061 The following costs were charged to Work in Process-sifting Department during July: Direct materials transferred from Milling Department: $33,755 15,700 units at $2.15 a unit 4,420 Direct labor 2,708 Factory overhead During July, 15,500 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, completed. Instructions 1. Prepare a cost of production report for the Sifting Department for July. 2. Journalize the entries for costs transferred from Milling to Sifting and the costs trans- ferred from Sifting to Packaging. 3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. Discuss the uses of the cost of production report and the results of part (3)