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 38,800 Completed and transferred to Blending Materials 495,000 Direct labor 72,000 Overhead 181,000 March 31 balance ? The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $25,000; direct labor, $4,000; and overhead, $9,000 Costs incurred during March in the Blending Department were materials used, $115,000; direct labor, $18,000, and overhead cost applied to production, $42,000 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, $225,000. (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, $740,000 f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $950,000 g. Completed units were sold on account, $1,500,000. The Cost of Goods Sold was $900,000 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 Finished goods $618,000 $ 65,000 $ 20,000 Answer is not complete. 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. Key your entries to the items (a) through (9) below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transactions Credit General Journal Work in process-Refining Department Work in process-Blending Department Raw materials Debit 495,000 115,000 9 610,000 2 b Work in process Refining Department Work in process --Blending Department Salaries and wages payable OOO 72,000 18,000 90,000 3 C Manufacturing overhead Accounts payable 225,000 . 225,000 4 d Work in process Refining Department Manufacturing overhead 181,000 181,000 3 5 Work in process--Blending Department . 42,000 2 Accounts Receivable Raw Materials Beg. Bal Beg Bal End. Bal 0 End. Bal 0 Work in Process-Refining Department Work in Process-Blending Department Beg Bal Beg. Bal End Bal 0 End. Bal. 0 Finished Goods Manufacturing Overhead Beg Bal Beg Bal End. Bal 0 0 End Bal 0 Accounts Payable Salaries and Wages Payable Beg Bal Beg Bal End. Bal 0 End. Bal 0 Sales Cost of Goods Sold Beg Bal Beg Bal End. Bal 0 End. Bal 0
