2Record direct labor cost incurred for Refining and Blending Department.
3 Record manufacturing expenses incurred for the whole factory.
4Record entry to apply overhead cost to production at a predetermined rate to the Refining Department and Blending Department.
5Record transfer of semi finished units from Refining to Blending Department.
6Record the transfer of completed units from the Blending Department to finished goods.
7 Record sales on account.
8 Record cost of goods sold.
Lubricants, Incorporated, produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departments-Refining and Blending. Raw materials are introduced at various points in the Refining Department. The following incomplete Work in Process account is available for the Refining Department for March: Work in Process-Refining Department Debit Credit March 1 balance 33, 600 Completed and transferred to Blending Materials 155, 600 Direct labor 66, 200 Overhead March 31 balance 473, 000 ? The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,900; direct labor, $3,100; and overhead, $21,600. Costs incurred during March in the Blending Department were: materials used, $45,000; direct labor, $16,100; and overhead cost applied to production, $106,000. Required: 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key your entries to the items (a) through (g) below. a. Raw materials used in production. b. Direct labor costs incurred. c. Manufacturing overhead costs incurred for the entire factory, $676,000. (Credit Accounts Payable.) d. Manufacturing overhead was applied to production using a predetermined overhead rate. e. Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $692,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $740,000. g. Completed units were sold on account, $1,320,000. The Cost of Goods Sold was $600,000. 2. Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Refining Department's Work in Process is given in the T-account shown above.) Raw materials Work in process-Blending Department Finished goods $ 210, 600 $ 46,000 $ 13,000 Required 1 Required 2 Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key you entries to the items (a) through (9) below. (If no entry is required for a transaction/event, select "No journal entry required" in the fi account field.) View transaction list Journal entry worksheet Record issuance of raw materials to Refining and Blending Department. Note: Enter debits before credits. Transactions General Journal Debit Credit a. Record entry Clear entry View general journal Post the journal entries from Requirement 1 to T-accounts. Accounts Receivable Debit Credit Beginning Balance Raw Materials Credit Debit Beginning Balance Ending Balance Ending Balance Work in Process-Refining Department Debit Credit Beginning Balance Work in Process-Blending Department Debit Credit Beginning Balance Ending Balance Ending Balance Finished Goods Debit Credit Manufacturing Overhead Debit Beginning Balance Credit Beginning Balance Ending Balance Ending Balance Accounts Payable Credit Credit Debit Beginning Balance Salaries and Wages Payable Debit Beginning Balance Ending Balance Ending Balance Sales Cost of Goods Sold Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance
