Fryer's 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 smel. 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 Procluding Coepleted and transferred to Bottling 1 7 litres) $773 March 1 bulance (20,000 litres; materials 100 complete; Labour ; and serhead De complete) March conta added: Dils (390,000 litre Direct labour Overhead $ 538,000 495,000 72,000 101.000 March 31 inventory (40,000 Lt materiala 75 complete, labour and overhead 251 complete $777 $ 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. Completed units were sold on account $1,500,000. The cost of goods sold was $890,000 View transactions Journal entry worksheet 1 2 3 7 B > Raw materials were issued for use in production Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal 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 Department's Work in Process account is given above.) Raw materials Work in Procain-bottling Department Finished Goods $631, DO 65.00 $ 20,000 After posting the entries to the T-accounts, find the ending balance in the Inventory accounts and the manufacturing overhead accounts Work in Process-Botting Department Beg Bal Work in Process-Blending Department Beg Bal. End. Bal End Manufacturing Overhead Finished Goods Bes Bal Beg. But End. BAL End. Bl Raw Materials Accounts Payable Beg Bal B.Bal. End. Bal End. Bal Salaries and Wages Payable Sales Beg Bal Beg Ba | End Bal 1 . End. Bal Accounts Receivable Cost of Goods Sold Beg Bal Beg. Bal End. Bal End. Bal. . 3. Prepare a production report for the Blending Department for March. (Round "Cost per equivalent unit" answers to 2 decimal places.) Equivalent Units (EU) Material Labour Overhead Unite counted for as follows: Transferred to Botting Work in process March 31 Total units and equivalent units of production Costs per equivalent unit Total cost Material Lateur| Overhead Cost to be accounted for Work in process, March 1 Cost added by the Blending Departmen Total cost Equivalent units of production Cool per equivalent unit
