Montana's Choice Flour Company manufactures flour by a series of three processes, beginning 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 October 1, 2006:
Work in Process—Sifting Department (18,000 units, 80% completed) ..$25,200
The following costs were charged to Work in Process—Sifting Department during October:
Direct materials transferred from Milling Department: 490,000 units .. $686,000
Direct labor .......................... 71,200
Factory overhead ........................ 106,800
During October, 488,000 units of flour were completed. Work in Process—Sifting Department on October 31 was 20,000 units, 30% completed.

Instructions
Prepare a cost of production report for the Sifting Department for October, using the average cost method.