Journal Entries:

1. Record issuance of raw materials to Refining and Blending Department.

2. Record direct labor cost incurred for Refining and Blending Department.

3. Record manufacturing expenses incurred for the whole factory.

4. Record entry to apply overhead cost to production at a predetermined rate to the Refining Department and Blending Department.

5. Record transfer of semi finished unties from Refining to Blending Department.

6. Record the transfer of completed units from the Blending Department to finished goods.

7. Record sales on account.

8. Record cost of good sold.

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-Refinin rtment March 1 balance 31,200 Completed and transferred to Blending Materials Direct labor Overhead March 31 balance 144,600 72,200 473,000 The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,700; direct labor, $3,600; and overhead, $19,900 Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $16,200; and overhead cost applied to production, $102,000 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, $656,000. (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, $642,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $750,000 g. Completed units were sold on account, $1,340,000. The Cost of Goods Sold was $680,000 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 42,000 Finished goods $ 208,600 21,000 Complete this question by entering your answers in the tabs belovw Required 1 Required 2 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record issuance of raw materials to Refining and Blending Department. Note: Enter debits before credits. Post the journal entries from Requirement 1 to T-accounts Accounts Receivable Raw Materials Beg. Bal Beg. Bal End. Bal End. Bal Work in Process-Refining Department Work in Process-Blending Department Beg. Bal Beg. Bal End. Bal End. Bal Finished Goods Manufacturing Overhead Beg. Bal Beg. Bal End. Bal End. Bal Accounts Payable Salaries and Wages Payable Beg. Bal Beg. Bal End. Bal End. Bal Sales Cost of Goods Sold Beg. Bal Beg. Bal End. Bal End. Bal