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. Materials. Direct labor Overhead March 31 balance. Work in Process-Refining Department 33,300 154,600 69,200 476,000 ? Completed and transferred to Blending ? The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,500; direct labor, $4,400; and overhead, $20,400. a. Raw materials used in production. b. Direct labor costs incurred. Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $16,100; and overhead cost applied to production, $99,000. 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. 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, $662,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $760,000. g. Completed units were sold on account, $1,310,000. 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 T-account shown above.)

Journal entry worksheet 2 5 6 8 Record issuance of raw materials to Refining and Blending Department. Note: Enter debits before credits. Required 1 Raw materials Work in process-Blending Department Finished goods $211,600$47,000$12,000 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 avallable for the Refining Department for March: The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,500; direct labor, $4,400, and overhead, $20,400. Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $16,100; and overhead cost applied to production, $99.000. 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 overhpad rate. e. Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $662,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $760,000. g. Completed units were sold on account, $1,310,000. 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 T-account shown above) Required 1 Required 2 Post the journal entries from Requirement 1 to T-accounts. \begin{tabular}{|l|l|l|l|} \hline Bog. Bal. & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline Beg. Bal. & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} End. Bal. Finished Goods Beg. Bal. \begin{tabular}{|l|r|r|r|} \hline & & & \\ \hline & & & \\ \hline End. Bal. & 0 & 0 & \\ \hline & & & \\ \hline \end{tabular} Beg Bal. Accounts Payable Salaries and Wages Payable Bog. Bal.