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 ProcessSifting Department was as follows on May 1:

Work in ProcessSifting Department (1,500 units, 75% completed)

$3,400

The following costs were charged to Work in ProcessSifting 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 ProcessSifting Department on May 31 was 1,800 units, 75% completed.

Required:

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

Blue Ribbon Flour Company
Cost of Production ReportSifting Department
For the Month Ended May 31
Unit Information
Units charged to production:
Inventory in process, May 1
Received from Milling Department
Total units accounted for by the Sifting Department
Units to be assigned costs:
	Whole Units	Equivalent Units of Production
Transferred to Packaging Department in May
Inventory in process, May 31
Total units to be assigned costs
Cost Information
Cost per equivalent unit:
		Costs
Total costs for May in Sifting Department		$
Total equivalent units
Cost per equivalent unit		$
Costs assigned to production:
Inventory in process, May 1		$
Costs incurred in May
Total costs accounted for by the Sifting Department		$
Costs allocated to completed and partially completed units:
Transferred to Packaging Department in May		$
Inventory in process, May 31
Total costs assigned by the Sifting Department		$