White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Miling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined fout. The balance in the account Workin Process-Siftigg Department was as follows on July 1 The following costs were charged to Work in Process. Siming Depaitment during July During July, 16, 100 units of flour were completed. Work in Process-Sifing Department on July 31 was 1,100 units, 4/5 completed. Required: 1. Prepare a cost of production report for the Sitting Department for vuly 2 Journalize the entres for costs transferred from Mining to Sitting and the costs transferred from Sining to Packaging 3 Determine the increase or decrease in the cost pet equialent und from vune to vuly for direct matorias and converaion coata 4 Discuss the uses of the cost of production repant and the resuts of part (3) Cost of Production Report UNITS Whole Units Equivalent Unats Direct Materials Conversian Units charged to production: Inventory in process, July 1 Received from Miling Department Total units accounted for by the sifting Department Units to be aspigned costs Inventory in process, Juty 1 (3/5 completed) Started and completed in Juh Transferted to Packaging Department in duly inventory in process, July 31 (45 completed) Total unies in be arcioned rosts Instructinns Cost of Production Report cosTS Cosis Direct Materials Conversion Total Cost per equivalent unit: Total costs for July in Sifting Department Total equivalent units Cost per equivalent unit Costs assigned to production Inventory in process, July 1 Costs incurred in July Total costs accounted tor by the Sirting Department Costs allocated to completed and partialiy compieted units Cost of Production Report Costs incurred in July Total costs accounted for by the sifting Department Costs allocated to completed and partiblly completed units Irventory in process, July 1-balance To complete inventory in process, July 1 Cest of completed July 1 work in process Started and completed in July Transferted to Packaging Department in Jut) inventory in process. July 31 Total costs assigned by the Sifling Departinent General Journal ockliminturezins PACE IO JOUPALL ACCOUNTING EQUATION DATE OESFFPTOW FOST. MF cEET CAECIT AsEs LAELT routr 4 Discuss the uses of the cost of production repart and the resuins of part (3). The cost of production report may be used as the basis for allocating product costs between and The report can also be used to control costs by holding each department head responsibie for the units entering production and the cotts incurred in the department. Any differences in und product costs from one month to anothes, such as those in part (3), can be ctudied carefuly and any signdcans difinences investigated