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Lubricants, Inc. produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departments -

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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: March 1 balance Work in Process-Refaning Department 33,300 Completed and transferred to blending 147,600 63,200 474,000 Materials Direct labor Overhead March 31 balance The March 1 work in process Inventory in the Refining Department consists of the following elements: Materials: $7,900; direct labor $4,300; and overhead, $21100. Costs incurred during March in the Blending Department were materials used, $46,000, direct labor $16.200; and overhead cost applied to production $114,000 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 (9) below, a Raw materiais used in production b. Direct labor costs incurred c Manufacturing overhead costs incurred for the entire factory $686,000. (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, $662,000 Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $750,000 9. Completed units were sold on account, $1410,000. The Cost of Goods Sold was $610,000. 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 $288,600 $ 56,000 $ 16,000

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