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Blue Ribbon Flour Company manufactures flour by a series of three processes, beginning in the Milling dept. From the Milling Department, the...

Blue Ribbon Flour Company manufactures flour by a series of three processes, beginning in the Milling dept. From the Milling Department, the materials pass through the sifting and packaging depts., emerging as packaged refined flour.

The balance in the account Work in Process—sifting dept was as follows on Oct 1, 2008:

Work in Process-Sifting dept (15,000 units, 75% completed) $42,000

The following costs were charged to Work in Process-sifting dept during Oct:

Direct material transferred from Milling Dept: 235,800 units $632,600

Direct labor 160,735

FactoryOverhead 76,900


During Oct. 233,800 units of flour were completed. Work in Process-sifting dept on Oct. 31 was 17,000 units, 75% completed.


INSTRUCTIONS


Prepare a cost of production report for the Sifting Dept for October, using average cost method.

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