e 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, 2016:
Work in Process-Sifting Department
(900 units, completed):
Direct materials (900 x $2.05): $1,845
Conversion (900 x 0.60 x $0.40): 216
Total: $2,061
The following costs were charged to Work in Process-Sifting Department during July:
Direct materials transferred from Milling Department:
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 in Process-Sifting Department on July 31 was 1,100 units, 4/5 completed.
Required:
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.