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 Proces-Refining Department 33, 100 Completed and transferred ta Blending 135,600 82,200 427,000 Materiale Diret 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, $3,900; and overhead, $21,300. Costs incurred during March in the Blending Department were: materials used. $45.000, direct labor. $17,100, and overhead cost applied to production. $99.000 Required: 1. Prepbre 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 ( below. Raw Materals used in production, 5. Direct labor costs incurred Manufacturing overhead costs incurred for twentre factory $616.000 Credit Accounts Payable.) d: Manutturmg overhead was applied to prodation in predetermined overhead tate, e. Unles that were complete with espect to processing Retning Department were transferred to the Bending Department $662.000 Units that were complete with spet processing the Blenn Department were transferred to Finished Goods. S740.000. g Completed units were sold on coul. $130.00 lei Guads Sald was $620.000 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 $ 209,600 $ 45,000 $ 28,000 Required 1 Required 2 Post the journal entries from Requirement 1 to T-accounts. Accounts Recavable 209,600 Beg. Bal. Beg. Bal 200,600 End. Bal. 0 End. Bal 9,000 Work in Process Refining Department Work In Process--Blending Department Beg. Bal. Beg. Bal End. Bal. End, Bal 0 Finished Goods Manufacturing Overhead Beg Bal. Beg Bal End. Bal End Bal Accounts Payable Salaries and Wages Payable Bog. Bal Beg Bal End. Bal End. Bai Sales Bog Bali Cost of Goods Sold Bog Bal End. Bal. Erd Bal Required ork Problems most the journal entries from Requirement 1 to T-accounts. Raw Materials 209,600 200,600 Accounts Recolvable Beg. Bal. eg. Bal. 9,000 End. Bal. 0 End. Bal. Work in Process Blending Departmen Work in Process-Refining Department Beg. Bal Beg Bal. 0 0 End. Bal. End. Bal. Finished Goods Manufacturing Overhead Beg. Bal Beg. Bal. End. Bal 0 0 End. Bal Accounts Payable Salaries and Wages Payable Beg. Bal. Beg Bal End. Bai. 0 End. Bal Sales Cost of Goods Sold Beg, Bal Beg. Bal
