Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departmentsRefining 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 ProcessRefining Department
March 1 balance	38,000	Completed and transferred to Blending	?
Materials	495,000
Direct labor	72,000
Overhead	181,000
March 31 balance	?

The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $25,000; direct labor, $4,000; and overhead, $9,000.

Costs incurred during March in the Blending Department were: materials used, $115,000; direct labor, $18,000; and overhead cost applied to production, $42,000.

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.

1. Raw materials used in production.
2. Direct labor costs incurred.
3. Manufacturing overhead costs incurred for the entire factory, $225,000. (Credit Accounts Payable.)
4. Manufacturing overhead was applied to production using a predetermined overhead rate.
5. Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $740,000.
6. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $950,000.
7. Completed units were sold on account, $1,500,000. The Cost of Goods Sold was $900,000.

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 Departments Work in Process is given in the T-account shown above.)

Raw materials	$	618,000
Work in processBlending Department	$	65,000
Finished goods	$	20,000

Answer is not complete.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Transactions	General Journal	Debit	Credit
1	a.	Work in processRefining Departmentselected answer correct	495,000selected answer correct	not attempted
		Work in processBlending Departmentselected answer correct	115,000selected answer correct	not attempted
		Raw materialsselected answer correct	not attempted	610,000selected answer correct
2	b.	Work in processRefining Departmentselected answer correct	72,000selected answer correct	not attempted
		Work in processBlending Departmentselected answer correct	18,000selected answer correct	not attempted
		Salaries and wages payableselected answer correct	not attempted	90,000selected answer correct
3	c.	Manufacturing overheadselected answer correct	225,000selected answer correct	not attempted
		Accounts payableselected answer correct	not attempted	225,000selected answer correct
4	d.	Work in processBlending Departmentselected answer correct	42,000selected answer correct	not attempted
		Work in processRefining Departmentselected answer correct	not attempted	42,000selected answer incorrect
5	e.	Work in processBlending Departmentselected answer correct	740,000selected answer correct	not attempted
		Work in processRefining Departmentselected answer correct	not attempted	740,000selected answer correct
6	f.	Finished goodsselected answer correct	950,000selected answer correct	not attempted
		Work in processBlending Departmentselected answer correct	not attempted	950,000selected answer correct
7	g(1).	Accounts receivableselected answer correct	1,500,000selected answer correct	not attempted
		Salesselected answer correct	not attempted	1,500,000selected answer correct
8	g(2).	Cost of goods soldselected answer correct	900,000selected answer correct	not attempted
		Finished goodsselected answer correct	not attempted	900,000

4d is incorrect . could you please help me and explain