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 32,000 Completed and transferred to Blending Materials 145,600 Direct labor 74,200 Overhead 486.000 March 31 balance ? The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,700; direct labor, $3,400; and overhead, $19,900. Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $16,900; and overhead cost applied to production, $103,000. 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, $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, $642,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $700,000. g. Completed units were sold on account, $1,370,000. 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 Work in processBlending Department Finished goods $ 209,600 $ 58,000 $ 15,000 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.) View transaction list View journal entry worksheet General Journal Debit Credit No 1 Transactions a. 145,600 Work in process-Refining Department Raw materials 145,600 2 b. 74,200 Work in process-Refining Department Salaries and wages payable 74,200 C. 696,000 Manufacturing overhead Accounts payable 696,000 486,000 Work in processRefining Department Manufacturing overhead 486,000 642,000 Work in process-Blending Department Work in process-Refining Department 642,000 700,000 Finished goods Work in processBlending Department 700,000 g(1). 1,370,000 Accounts receivable Sales 1,370,000 8 g(2). 620,000 Cost of goods sold Finished goods 620,000 Required 1 Required 2 Post the journal entries from Requirement 1 to T-accounts. Accounts Receivable Raw Materials Beg. Bal. Beg. Bal. End. Bal. O End. Bal. 0 Work in Process-Refining Department Work in Process-Blending Department Beg. Bal. Beg. Bal. End. Bal 0 End. Bal. 0 Finished Goods Manufacturing Overhead Beg. Bal. Beg. Bal. End. Bal. 0 0 End. Bal. O Accounts Payable Salaries and Wages Payable Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. L O Sales Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal. 1 0 End. Bal. 0