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 (700 units, 3/5 completed): Direct materials (700 $2.05) $1,435 Conversion (700 3/5 $0.50) 210 $1,645 The following costs were charged to Work in Process-Sifting Department during July: Direct materials transferred from Milling Department: 17,800 units at $2.15 a unit $38,270 Direct labor 4,440 Factory overhead 5,339 During July, 17,000 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,500 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). 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. WHITE DIAMOND FLOUR COMPANY Cost of Production Report-Sifting Department For the Month Ended July 31 UNITS Whole Units Equivalent Units Direct Materials Conversion Units charged to production: Inventory in process, July 1 700 Received from Milling Department 17,800 Total units accounted for by the Sifting Department 18,500 Units to be assigned costs: Inventory in process, July 1 (3/5 completed) 700 0 280 Started and completed in July 16,300 16,300 16,300 Transferred to Packaging Department in July 1,500 1,500 1,200 Inventory in process, July 31 (4/5 completed) Total units to be assigned costs 18,500 17,800 17,780 Points: 12 / 18 Check My Work 1. Calculate equivalent units for direct materials and conversion costs. COSTS Costs Direct Materials Conversion Total Cost per equivalent unit: Total costs for July in Sifting Department $38,270 $9,779 Total equivalent units 17,800 17,780 Cost per equivalent unit $2.15 $0.55 Costs assigned to production: Inventory in process, July 1 $1,645 Costs incurred in July 143 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 July Transferred to Packaging Department in July $ Inventory in process, July 31 Total costs assigned by the Sifting Department $