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:

The cost summary for January shows 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.
3. Make the required journal entries to record the January operations.
4. Prepare a statement of cost of goods manufactured for the month ended January31.

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Dept 1 Dept Dept. 3 50,000 Received from prior department.. 40,000 40,000 30,000 5,000 5,000 1/4 30,000 28,000 on hand. Work in process, end of month.10,000 2,000 3/4 1/2 Dept 1 Dept Dept. 3 $22,500 23,200 $19,600 14,500 14,500 S40.500 $52,200 $40.250 11,800 8,850 7,200 10.800 14500