Cost of production summaries, one department, two months; journal entries Manufacturing...

Cost of production summaries, one department, two months; journal entries

Manufacturing data for January and February in the Mixing Department of Kerwin Kleaning Products follow:

All materials are added at the start of the process. Labor and factory overhead are added evenly throughout the process. No units were in process at the beginning of January. Goods finished in Mixing are transferred to Blending for further processing.

Required:

1. From an analysis of this information, prepare a cost of production summary for each month, using the average cost method. (Round unit costs to three decimal places.)

2. Make the journal entries necessary to record each month’s transactions. (Hint: See Chapter 5 to review.)