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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

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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 Dollar Amount Cost Source Direct Materials (900 x $3.15) Conversion (900 X 3/5 x $0.30) Total Materials and Conversion $2,835 162 2,997 The following costs were charged to Work in Process-Sifting Department during July: Work in Process-Sifting Department Dollar Amount Cost Source Direct materials transferred from Milling Department: 15,700 units at $2.30 a unit Direct Labor Factory Overhead I $36,110 5,420 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 a. Prepare a cost of production report for the Sifting Department for July b. Journalize the entries for costs transferred from Milling to sifting and the costs transferred from Sifting to Packaging. c. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs. d. Discuss the uses of the cost of production report and the results of part (c)

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