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 × $2.35) $1,645 Conversion (700 × 3/5 × $0.30) 126   $1,771   The following costs were charged to Work in Process-Sifting Department during July: Direct materials transferred from Milling Department:   15,700 units at $2.45 a unit $38,465 Direct labor 4,480 Factory overhead 1,022   During July, 15,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,300 units, 4/5 completed.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
(700 units, 3/5 completed):
Direct materials (700 × $2.35) $1,645
Conversion (700 × 3/5 × $0.30) 126
  $1,771
 
The following costs were charged to Work in Process-Sifting Department during July:
Direct materials transferred from Milling Department:
  15,700 units at $2.45 a unit $38,465
Direct labor 4,480
Factory overhead 1,022
 
During July, 15,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,300 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).
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