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 Materials Direct labor Overheat March 31 balance Work in Process-Refining Department 38.000 Completed and transferred to Blending 495,000 72,000 181,000 ? 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, 59.000. Costs incurred during March in the Blending Department were materials used $115,000, direct labor, $18,000, and overhead cost applied to production, $42000. 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, 5740,000 Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $950,000 9. Completed units were sold on account. $1500,000 The Cost of Goods Sold was 5900,000 2. Post the journal entries from (1) above to 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 Taccount shown above) work in process-lending Department Fished $ 610,000 $65.000 520,000 Complete this question by entering your answers in the tabs below. thal entrierement to accounts 0 000 610.000 Complete this question by entering your answers in the tabs below. Pequired 1 Required 2 Post the journal entries from Requirement 1 to T-accounts. Accounts Receivable Raw Materials 618,000 Beg Bal Beg Bal 9 1.500.000 End, Bal 1,500,000 End Bal 618,000 Work In Process Refining Department Work in Process -Blending Department Beg Bal Beg Bal End Bal End Bal Finished Goods Manufacturing Overhead Be Bal Beg Bal End Bal End Bal Accounts Payable Salaries and Wwe Payable Beg Ball Endal End Bal Cost of Gods Hold Dng Ball Beg Bal End Sal
