Cost of production report: average cost method Blue Ribbon 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 May 1, 2016:

Work in Process—Sifting Department (1,500 units, 75% completed) $3,400 The following costs were charged to Work in Process—Sifting Department during May:

Direct materials transferred from Milling Department: 18,300 units $32,600 Direct labor 14,560 Factory overhead 7,490 During May, 18,000 units of flour were completed and transferred to finished goods. Work in Process—Sifting Department on May 31 was 1,800 units, 75% completed.

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

Transferred to Packaging Dept.,

$54,000 Cases & Projects