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 $32,100$ Completed and transferred

to Blending $?$

Materials $153,600$

Direct labor $71,200$

Overhead $476,000$

March $31$ balance $?$

The March $1$ work in process inventory in the Refining Department consists of the following elements: materials, $$7,200$; direct labor, $$4,700$; and overhead, $$20,200.$

Costs incurred during March in the Blending Department were: materials used, $$45,000$; direct labor, $$17,400$; and overhead cost applied to production, $$105,000.$

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.

Raw materials used in production.

Direct labor costs incurred.

Manufacturing overhead costs incurred for the entire factory, $$696,000.($Credit Accounts Payable.$)$

Manufacturing overhead was applied to production using a predetermined overhead rate.

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, $$740,000.$

Completed units were sold on account, $$1,460,000.$ The Cost of Goods Sold was $$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 $ $205,600$

Work in process$$Blending Department $ $40,000$

Finished goods $ $26,000$Problem $4-17($Algo$)$ Cost Flows $[$LO $4-1]$

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:

The March $1$ work in process inventory in the Refining Department consists of the following elements: materials, $$7,200$; direct labor,

$$4,700$; and overhead, $$20,200.$

Costs incurred during March in the Blending Department were: materials used, $$45,000$; direct labor, $$17,400$; and overhead cost

applied to production, $$105,000.$

Required:

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, $$696,000.($Credit Accounts Payable.$)$

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.$

f$.$ Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $$740,000.$

g$.$ Completed units were sold on account, $$1,460,000.$ The Cost of Goods Sold was $$620,000.$

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.$)$