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 Completed and transferred to Blending March 1 balance Materials Direct labor Overhead 31,900 145,600 81,200 483,000 March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,900; direct labor, $3,500; and overhead, $20,500. Costs incurred during March in the Blending Department were: materials used, $45,000; direct labor, $16,400; and overhead cost applied to production, $118,000. Required: 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) a. Raw materials were issued for use in production. b. Direct labor costs were incurred. c. Manufacturing overhead costs for the entire factory were incurred, $676,000. (Credit Accounts Payable.) d. Manufacturing overhead cost 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. f. 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, $1,450,000. The Cost of Goods Sold was $600,000. Journal entry worksheet 2 3 4 5 6 7 8 9 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 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 account is given in the above question data.) $205,600 Raw materials Work in process-Blending Department Finished goods $ 42,000 $25,000 After posting the entries to the T-accounts, find the ending balance in the inventory accounts and the manufacturing overhead account. After posting the entries to the T-accounts, find the ending balance in the inventory accounts and the manufacturing overhead account. 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. Clonex Labs, Inc., uses a process costing system. The following data are available for one department for October Percent Completed Units Materials Conversion Work in process, October 1 49,000 90% 60% Work in process, October 31 32,000 68% 47% The department started 394,000 units into production during the month and transferred 411,000 completed units to the next department. Required: Compute the equivalent units of production for October, assuming that the company uses the weighted average method of accounting for units and costs. Materials Conversion Equivalent units of production Alaskan Fisheries, Inc., processes salmon for various distributors. Two departments are involved - Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department during July are presented below: Pounds of Salmon 31,000 Percent Completed Labor and Materials Overhead 100% 57% Work in process inventory, July 1 Work in process inventory, July 31 20.000 100% 80% A total of 510,000 pounds of salmon were started into processing during July. All materials are added at the beginning of processing in the Cleaning Department. Required: Compute the equivalent units for July for both materials and labor and overhead assuming that the company uses the weighted-average method of accounting for units. Materials Labor and Overhead Equivalent units of production