Chiu Ltd prepares bulk supplies of Singapore noodles using two departments, a Blending Department and a Packaging Department. The finished product is sold in large quantities to retailers that package it and sell it with their own labels.

Raw materials (ingredients) are added at the beginning of each department’s process, and conversion costs are incurred uniformly throughout. The noodles flow from the Blending Department to the Packaging Department and then to finished goods inventory when all the work is completed. Production data in kilograms for the month of August with completed percentages for the conversion costs were as follows:

	Beginning inventory	% complete	Units started	Ending inventory	% complete
Blending Department Packaging Department	30000 36000	40 60	280000 ?	40000 84000	30 50

Beginning work in process inventory costs on 1 August were as follows:

		Blending Department		Packaging Department
Previous department costs Raw materials Conversion costs		— $114000 28800		$252000 64800 36000

Production costs incurred during August were the following:

		Blending Department		Packaging Department
Raw materials Conversion costs		$1064000 648000		$360000 486000

Required

Prepare a cost of production report for May for the blending department. (Ignore GST.)