Question

Cost of Production Reports Average Cost Method Blue Ribbon Hour Company manufactures flour by a series of three processes, beginning in the Milling Department. From the Miling Department, the materials pass through the Sitting and Padaging departments, emerging as packaged refined flour The balance in the account Work in Process --Sifting Department was as follows on May 1: Work in Process Sifting Department (1.500 units, 75% completed) $3,400 The following costs were charged to Work in Process-Sting Department during May Direct materials transferred from Milling Departments 18,300 units $32,600 Direct labor Factory overhead 7,490 ng Department on May 31 was 1.000 units 75 completed During May 10.000 units of four were completed and transferred to finished goods. Work in Required: Prepare a cost of production report for the Sitting Department for May, using the average cost Bee Ribbons Four Company Cost of Production Report-Sting Dep For the Mo de Units charged to production Inventory pre May 1 Total scored for by the Units to be grados

Answer 1

Unit Information:-

Units charged to production:
Inventory in Process, May 1	1500
Received from Milling Department	18300
Total units accounted for by the Shifting Dept	19800

Units to be assigned cost:-

	Whole Units	Equivalent Units of Production
Transferred to Packaging Dept in May	18000	18000
Inventory in Process May 31	1800	(1800 * 75%) =1350
Total Units to be assigned costs	19800	19350

Cost Information :-

Cost per Equivalent Unit:
Total cost for May in Sifting Dept	$58050
Total Equivalent Units	19350
Cost per Equivalent Unit	$3
Costs assigned to production:
Inventory in Process, May 1	$3400
Costs incurred in May	$54650
Total costs accounted for by the Sifting Dept	$58050
Costs allocated to completed and partially completed units:
Transferred to Packaging Dept in may (18000 * $3)	$54000
Inventory in Process, May 31 (1350 * $3)	$4050
Total costs assigned by the Sifting Dept	$58050