Fryers Choice produces a specially blended vegetable oil widely used in restaurant deep fryers. The blending process creates a cooking oil that can be heated to a high temperature, but does not smoke or smell. The oil is produced in two departments: Blending and Bottling. Raw materials are introduced at various points in the Blending Department.

The following incomplete Work in Process T-account is available for the Blending Department for March:

Work in ProcessBlending

March 1 balance (20,000 litres; materials 100% complete; labour and overhead 90% complete)	$38,000		Completed and transferred to Bottling ( ? litres)	$???
March costs added:
Oils (390,000 litres)	495,000
Direct labour	72,000
Overhead	181,000
March 31 inventory (40,000 litres; materials 75% complete, labour and overhead 25% complete)	$???

The March 1 beginning inventory in the Blending Department consists of the following cost elements: raw materials, $25,000; direct labour, $4,000; and overhead, $9,000.

Costs incurred during March in the Bottling Department were materials used, $115,000; direct labour, $18,000; and overhead cost applied to production, $42,000. The company uses the weighted-average method in its process costing.

Required:

1.	Prepare journal entries to record the cost incurred in both the Blending Department and the Bottling Department during March. Key your entries to the items (a) through (f) below:

a.	Raw materials were issued for use in production
b.	Direct labour costs were incurred.
c.	Manufacturing overhead costs for the entire factory were incurred: $225,000. (Hint: Credit Accounts Payable.)
d.	Manufacturing overhead cost was applied to production using a predetermined overhead rate.
e.	Units that were complete with respect to processing in the Bottling Department were transferred to finished goods: $950,000.
f.	Completed units were sold on account: $1,500,000. The cost of goods sold was $890,000.

2.	Post the journal entries from requirement 1 above to T-accounts. The following account balances existed at the beginning of March. (Note: The beginning balance in the Blending Departments Work in Process account is given above.)

Raw materials	$	681,000
Work in ProcessBottling Department	$	65,000
Finished Goods	$	20,000

After posting the entries to the T-accounts, find the ending balance in the inventory accounts and the manufacturing overhead accounts.

3.	Prepare a production report for the Blending Department for March. (Round "Cost per equivalent unit" answers to 2 decimal places.)

4.	Prepare the journal entry to record the transfer of finished goods from the Blending Department to the Bottling Department and post to the appropriate T-accounts prepared in requirement 2 above.