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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

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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 balance ? Work in Process-Refining Department 32,800 Completed and transterred to Blending 140,600 66,200 486.000 Materials Direct labor Overhead March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,800; direct labor, $3,200, and overhead, $20,800. Costs incurred during March in the Blending Department were: materials used $45,000; direct labor. $17,000; and overhead cost applied to production, $99,000 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, $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, $672,000. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $710,000. g. Completed units were sold on account. $1,430,000. The Cost of Goods Sold was $650,000. 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 $ 208,600 $ 49,000 $ 30,000 Debit Credit No Transactions 1 a. General Journal Work in process-Refining Department Work in process-Blending Department Raw materials 2 b. Work in process-Refining Department Work in process-Blending Department Salaries and wages payable 3 C. Manufacturing overhead Accounts payable 4 d. Work in process-Refining Department Work in process,Blending Department Manufacturing overhead 5 Work in process-Blending Department Work in process-Refining Department 6 f. Finished goods Work in process-Blending Department 7 g(1). Accounts receivable Sales 8 g(2) Cost of goods sold Finished goods ACCounts Receivable Raw Materiais Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal 0 Work in Process-Blending Department Work in Process-Refining 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

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