How do you determine the costs incurred?

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 $2.15)	$2,150
Conversion (1,000 3/5 $0.40)	240
	$2,390

The following costs were charged to Work in Process-Sifting Department during July:

Direct materials transferred from Milling Department:
16,700 units at $2.25 a unit	$37,575
Direct labor	4,540
Factory overhead	3,056

During July, 16,600 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 4/5 completed.

	Required:
1.	Prepare a cost of production report for the Sifting 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).

Cost of Production Report Shaded cells have feedback 1. Prepare a cost or production report tor the sirting Department for July an amount is zero, enter "o" Round your cost per unit answers to the nearest cent and tinai answers to the nearest doiar amount WHITE DIAMOND FLOUR COMPANY Cost of Production Report-Sifting Department For the Month Ended July 31 Equivalent Units UNITS Whole Units Direct Materials Conversion Units charged to production Inventory in process, July 1 Received from Milling Department Total units accounted for by the Sifting Department Units to be assigned costs: Inventory in process, July 1 (3/5 completed) Started and completed in July Transferred to Packaging Department in July 1,000 16,700 17,700 1,000 15,600 16,600 400 15,600 16,000 15,600 15,600 Cost of Production Report Shaded cells have feedba 5,600 1,100V 16,700 16,600 Transferred to Packaging Department in July Inventory in process, July 31 (4/5 completed) Total units to be assigned costs 16,000 880 16,880 1,100V 17,700 Points: 18/18 Feedback Check My Work 1. Calculate equivalent units for direct materials and conversion costs Costs COSTS Direct Materials Conversion Total Cost per equivalent unit: $37,575v 16,700V 2 25 $7,596V 16,880 0 45 Total costs for July in Sitting Department Total equivalent units Cost of Production Report Shaded cells have feedbac 0.45V Cost per equivalent unit Costs assigned to production Inventory in process, July 1 Costs incurred in July Total costs accounted for by the Sifting Department Costs allocated to completed and partially completed units Inventory in process, July 1-balance To complete inventory in process, July 1 Cost of completed July 1 work in process Started and completed in Juy Transferred to Packaging Department in July Inventory in process, July 31 Total costs assigned by the Sifting Department $2,390V $2,390V 180 $2,570V $180V 35,100V 7,020 42,120 $44,690V 2,475 396 2,871 $47,561 Points:20 22