Question 2: Cost of Production Report: Weighted average 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 (2,500 units, 75% completed): $7,800 The following costs were charged to Work in Process-Sifting Dep nent during May: Direct materials transferred from Milling Department: 22,500 units $55,300 Direct labor $24,300 Factory overhead $15,500 During May, 23,000 units of flour were completed and transferred to finished goods. Work in ProcessSifting Department on May 31 was 2,000 units, 75% completed. Required: Prepare a cost of production report in the table below for the Sifting Department for May, using the weighted average method. Assume that direct materials are placed in process during production. Blue Ribbon Flour Company Cost of Production Report-Sifting 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 Transferred to Packaging Department in May Inventory in process, May 31 Total units to be assigned costs Equivalent Units of Production 1 Cost Information Cost per equivalent unit: Total costs for May in Sifting Department Total equivalent units Cost per equivalent unit Costs $ $ $ 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 $ |