Akron 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:

The cost summary for January shows the following:

Required:
1. Prepare a cost of production summary for each department for January, using the weighted average cost method.
2. Prepare the journal entries to record the January transactions.
3. Prepare a statement of cost of goods manufactured for the month ended January 31.

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Dept. 1 50,000 Dept. 2 Dept. 3 Started in process.. 40,000 30,000 5,000 5,000 114 30,000 Finished and transferred Finished and on hand. Work in process, end of month Stage of completion.. . . 40,000 28,000 10,000 2,000 1/2 3/4 Dept 1 Dept 2 Dept. 3 $22,500 $23,200 $19,600 14,500 14,500 $52,200 11,800 8,850 $40,250 7,200 Factory overhead.. 10,800 $40,500