Snowflake 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 July 1, 2008:
|
Work in Process—Sifting Department (19,600 units, 75% completed) |
$66,000 |
The following costs were charged to Work in Process—Sifting Department during July:
|
Direct materials transferred from Milling Department: 426,800 units |
$1,435,000 |
|
Direct labor |
375,925 |
|
Factory overhead |
118,900 |
During July, 429,700 units of flour were completed. Work in Process—Sifting Department on July 31 was 16,700 units, 25% completed.
Instructions
Prepare a cost of production report for the Sifting Department for July, using the average cost method.