Cost of production summaries, three departments; departmental cost worksheet; journal en...

Cost of production summaries, three departments; departmental cost worksheet; journal entries; statement of cost of goods manufactured

Youngstown Manufacturing Co. manufactures a cement-sealing compound called Seal-Rite. The process requires that the product pass through three departments. In Dept. 1, all materials are put into production at the beginning of the process; in Dept. 2, materials are put into production evenly throughout the process; and in Dept. 3, all materials are put into production at the end of the process. In each department, it is assumed that the labor and factory overhead are applied evenly throughout the process.

At the end of January, the production reports for the month show the following:

Required:

1. Prepare a cost of production summary for each department for January, using the average cost method.

2. Prepare a departmental cost worksheet for January. (Hint: See Chapter 5 to review.)

3. Make the required journal entries to record the January operations.

4. Prepare a statement of cost of goods manufactured for the month ended January 31.