Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 34,200 Completed and transferred to Blending Materials 157,600 Direct labor 64,200 Overhead 476,000 March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, 57.600, direct labor, $4.800; and overhead, $21,800. Costs incurred during March in the Blending Department were materials used, $45.000, direct labor. $17.200 and overhead cost applied to production, $102,000. 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, 5686,000. (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 1. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods. 5770,000, 9. Completed units were sold on account, $1,340,000 The Cost of Goods Sold was $670,000 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 Taccount shown above.) Raw materials Work in process-tlending Department Finished goods $ 210,600 $ 53,000 $ 15,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 1 Required 2 Post the journal entries from Requirement 1 to T-accounts. Accounts Receivable Raw Materials Beg. Bal Beg Bal End Bal End. Bal Work In Process-Refining Department Work in Process Blending Department Beg Bal Beg Bal End. Bal. End. Bal Finished Goods Manufacturing Overhead Beg Bal Beg Bal End. Bal. End. Bal Accounts Payable Salaries and Wages Payable Beg Bal Beg Bal End. Bal End. Bal Sales Cost of Goods Sold Beg Bal Beg Bal End, Bal. End. Bal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economic Development Finance

Authors: Karl F Seidman

1st Edition

0761927093, 9780761927099

More Books

Students also viewed these Accounting questions

Question

How many funds will be used by a state or local government?

Answered: 1 week ago

Question

What is meant by NPV?

Answered: 1 week ago