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
image text in transcribed
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 arch balance work in processRefining Department 33,100 Completed and transferred to Blending 148, Direct labor Overhead och balance The March 1 work in process inventory in the Refining Department consists of the following elements materials. $9.000, direct labor $3700, and overhead, $20.400. Costs incurred during March in the Blending Department were: materials used. $46,000, direct labor $17.700, and overhead cost applied to production, $115,000 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, $652.000 Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods 750,000 g. Completed units were sold on account. $1380,000. The Cost of Goods Sold was $680.000 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 5 $ 213,600 56,000 $ 27,00 Journal entry worksheet 2 3 4 5 6 7 8 Record Issuance of raw materials to Refining and Blending Department. Note: Enter debits before credits. Transactions General Journal Debit Credit Record entry Clear entry View general Journal arch Journal entry worksheet rences Record manufacturing expenses incurred for the whole factory. Note: Enter debits before credits Transactions General Journal Debit Credit Record entry Clear entry View general Journal View transaction list rint Journal entry worksheet

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_2

Step: 3

blur-text-image_3

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

Business Analysis With Microsoft Excel

Authors: Conrad Carlberg

3rd Edition

0789736640, 9780789736642

More Books

Students also viewed these Accounting questions

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago