69,200 Lubricants, Inc., 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 March 1 balance 31,900 Completed and transferred to Blending Materials 143,600 Direct labor Overhead 472,000 March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7.200; direct labor, $4,300; and overhead, $20,400. Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $17,400; and overhead cost applied to production, $105,000 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 (9) below. 5 a. Raw materials used in production b. Direct labor costs incurred, c. Manufacturing overhead costs incurred for the entire factory, $626,000. (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, . Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $800,000. g. Completed units were sold on account, $1,470,000. The Cost of Goods Sold was $670,000, 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.) Record direct labor cost incurred for Refining and Blending Department. Note: Enter debits before credits Transactions General Journal Debit Credit b. Record entry Clear entry View general Journal Record transfer of semi finished units from Refining to Blending Department. Note: Enter debits before credits Transactions General Journal Debit Credit Record entry Clear entry View general journal DU FB Fe FS F ezto meducation.com work Saved Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. K entries to the items (a) through (9) below. (If no entry is required for a transaction/event, select "No journal entry required in account field.) View transaction list Journal entry worksheet 1 5 6 7 co > Record cost of goods sold. Note: Enter debits before credits General Journal Transactions 962) Debit Credit Record entry Clear entry View general journal
