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
(900 units, 3/5 completed):
Direct materials (900 × $2.05)	$1,845
Conversion (900 × 3/5 × $0.40)	216
	$2,061

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

Direct materials transferred from MillingDepartment:
15,700 units at $2.15 a unit	$33,755
Direct labor	4,420
Factory overhead	2,708

During July, 15,500 units of flour were completed. Work inProcess-Sifting Department on July 31 was 1,100 units, 4/5completed.

	Required:
1.	Prepare a cost of production report for the Sifting Departmentfor July. If an amount is zero, enter "0". Round your cost per unitanswers to the nearest cent.
2.	Journalize the entries for costs transferred from Milling toSifting and the costs transferred from Sifting to Packaging. Referto the Chart of Accounts for correct wording of account titles. Usethe date July 31 for all journal entries.
3.	Determine the increase or decrease in the cost per equivalentunit 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 theresults of part (3).

Chart of Accounts

CHART OF ACCOUNTS
White Diamond Flour Company
General Ledger
ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 141 Work in Process-Milling 142 Work in Process-Sifting 143 Work in Process-Packaging 151 Factory Overhead-Milling 152 Factory Overhead-Sifting 153 Factory Overhead-Packaging 161 Finished Goods 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense