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 ProcessRefining Department

March 1 balance	32,200		Completed and transferred to Blending	?
Materials	142,600
Direct labor	64,200
Overhead	482,000
March 31 balance	?

The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,100; direct labor, $4,300; and overhead, $19,800.

Costs incurred during March in the Blending Department were: materials used, $44,000; direct labor, $17,700; and overhead cost applied to production, $107,000.

Required:

1.	Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a.	Raw materials were issued for use in production.
b.	Direct labor costs were incurred.
c.	Manufacturing overhead costs for the entire factory were incurred, $626,000. (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 Refining Department were transferred to the Blending Department, $652,000.
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, $1,390,000. 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 Departments Work in Process account is given above.)

Raw materials	$	210,600
Work in processBlending Department	$	46,000
Finished goods	$	11,000

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

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 Completed and transferred March 1 balance 32,200 to Blending 142,600 Materials Direct labor 64,200 Overhead 482,000 March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,100; direct labor S4, 300: and overhead, $19,800. Costs incurred during March in the Blending Department were materials used, S44,000; direct labor 517,700; and overhead cost applied to production, S107,000 Required 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Raw materials were issued for use in production b. Direct labor costs were incurred c. Manufacturing overhead costs for the entire factory were incurred, $626,000 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 Refining Department were transferred to the Blending Department, 5052,000. 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, $1,300,000. The Cost of Goods Sold was S680,000 view transaction list view general journal Journal Entry worksheet Record issuance of raw materials to Refining and Blending Department Debit Credit General Journal ransactions Enter debits before credits record entry clear entry