Hi-Tech Chemical Corporation produces aircraft fuel in a two-step process. Unrefined gasoline is purchased from a major oil company and refined in the Refining Department. The refined gasoline is then transferred to the Blending Department, where cleansers and other additives are mixed with the refined gasoline. The chemicals added in the Blending Department increase the total volume of fuel. The company uses a process cost system, with an average cost flow assumption, and it maintains a separate work in process account for each of its two producing departments. Data related to operations for March are:

Required:
(1) Prepare a cost of production report for each department for March.
(2) Prepare the appropriate general journal entries to record the charge to the producing departments for the costs incurred during March and to record the transfer of units from Refining to Blending and from Blending to Finished Goods Inventory.

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Refining Blending 800 1.400 Units in beginning inventory.. Units started in process in Refining 7,200 7,000 7,000 1,800 9,200 Units transferred from Refining to Blending this period. Units added to process in Blending Department this period Finished Goods this period Refining (100% materials, 75% labor Units transferred from Blending to Units in ending inventory 1,000 and 50% overhead) and 40% overhead) Cost in beginning inventory: Blending (80% materials, 40% labor, 1,000 Cost from preceding depart Materials $1,754 $728 Factory overhead. 160 Cost added during the current period: $7,272 1,520 2,940 $4,380 3,100 5,600 Materials Factory overhead