Question

Cost of Production e t Average Cast Method Blue Ribbon Four Company manufactures four by a series of the processes, beginning in the Ming Department from the Milling Department, the materials pass through the string and packaging departments, emerging as paded red flour. The balance in the account Work in Process-Sting Department was as follows on May 11 Work in Process ing Department (1.500 , completed) $3,400 The following costs were charged to work in Process-Sitting Department during May: Direct e d from east 18.00 units $32.600 Director 14. Factory Overhead During May, 18,000 units of our were completed and transferred to finished goods. Work in Processing Department on May 31 was 1.800 units, 75 completed Required: train the we Prepare a cost of products for the meny Cost of Production Reporting Department For the Monded May 31 Informacion Units charged to production Inventory in proces, May Received from Ming Department

Answer 1

Blue Ribbon Flow Company

Cost of production report-Sifting department

For the month ended May 31

Units charged to production
Inventory in process, May 1	1500
received from milling department	18300
Total units accounted for by the sifting department	19800
Units to be assigned costs	Whole unit	Equivalent unit of production
Transferred to packing department in May	18000	18000
Inventory in process, May 31	1800	1350
Total Units to assigned cost	19800	19350
Cost information
Cost per equivalent unit
Total cost for may in Sifting department		58050
Total equivalent unit		19350
Cost per equivalent unit		3
Cost assigned to production
Inventory in process, May 1		3400
Cost incurred in May		54650
Total Costs accounted for by the sifting department		58050
Cost allocated to completed and partially completed units
Transferred to packing department in May		54000
Inventory in process, May 31		4050
Total Costs assigned by the sifting department		58050