White Diamond Flour Company manufactures flour by a series ofthree processes, beginning with wheat grain being introduced in theMilling Department. From the Milling Department, the materials passthrough the Sifting and Packaging departments, emerging as packagedrefined flour.

The balance in the account Work in Process-Sifting Departmentwas as follows on July 1:

Work in Process-Sifting Department
(800 units, 3/5 completed):
Direct materials (800 × $2.15)	$1,720
Conversion (800 × 3/5 × $0.50)	240
	$1,960

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

Direct materials transferred from MillingDepartment:
15,500 units at $2.25 a unit	$34,875
Direct labor	4,540
Factory overhead	4,018

During July, 15,000 units of flour were completed. Work inProcess-Sifting Department on July 31 was 1,300 units, 4/5completed.

	Required:
1.	Prepare a cost of productionreport for the Sifting Department for July. If an amount is zero,enter "0". Round your cost per unit answers to the nearest cent andfinal answers to the nearest dollar amount.
2.	Journalize the entries forcosts transferred from Milling to Sifting and the costs transferredfrom Sifting to Packaging. Refer to the Chart of Accounts forcorrect wording of account titles. Use the date July 31 for alljournal entries.
3.	Determine the increase ordecrease in the cost per equivalent unit from June to July fordirect materials and conversion costs. Round your answers to thenearest cent.
4.	Discuss the uses of the cost ofproduction report and the results of part (3).