The increases to Work in Process— Roasting Department for Highlands Coffee Company for May 2014 as well as information concerning production are as follows:

Work in process, May 1, 1,150 pounds, 40% completed ........$ 1,700

Coffee beans added during May, 10,900 pounds .......... 28,600

Conversion costs during May ................. 12,504

Work in process, May 31, 800 pounds, 80% completed ....... —

Goods finished during May, 11,250 pounds ............. —

Prepare a cost of production report, using the average cost method.