1. 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		$