Reference no: EM132881613

Problem - Equivalent units and related costs; cost of production report: average cost method

State Fair 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 Process-Sifting Department was as follows on March 1, 2012:

Work in Process-Sifting Department (1,000 units, 75% completed) $2,600

The following costs were charged to Work in Process-Sifting Department during March:

Direct materials transferred from Milling Department: 16,800 units $31,000

Direct labor 13,250

Factory overhead 14,400

During March, 16,600 units of flour were completed and transferred to finished goods. Work in Process-Sifting Department on March 31 was 1,200 units, 75% completed.

Prepare a cost of production report for the Sifting Department for March, using the aver- age cost method.