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 Direct labor 68,200 480,000 March 1 balance 31,400 7 Materials 155,600 Overhead March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,800; direct labor, $3,800; and overhead, $19,800. Costs incurred during March in the Blending Department were: materials used, $45,000, direct labor, $17,400; 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 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. $646,000. (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, a. Raw materials used in production. b. Direct labor costs incurred. c. Manufacturing overhead costs incurred for the entire factory. $646,000. (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, $800,000 9. Completed units were sold on account, $1,450,000. The Cost of Goods Sold was $610,000. 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 process-Blending Department Tinished goods $ 210,600 $ 56,000 $ 24,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Post the journal entries from Requirement 1 to T-accounts. Accounts Receivable Raw Materials Beg. Bal Beg. Bal. 9 1,450,000 X X 210,600 155,600 X . 45,000 % x f. End. Bal. End. Bal 1,450,000 10,000 Beg. Bal. Beg. Bal. Work in Process-Refining Department 31,400 155,600 642,000 1. X 68,200 480,000 > Work in Process-Blending Department 56,000 45,000 800,000 f. 17.400 118,000 642,000 9 b + C End. Bal 93,200 End. Bal 78.400 Beg. Bal. f. Finished Goods 24,000 800,000 610,000 Bog. Bal Manufacturing Overhead 480,000 646,000 118,000 > 9 c. f. >> 78,400 End. Bal. 93,200 End, Bal. Finished Goods 24,000 800,000 610,000 Beg. Ball Manufacturing Overhead 480,000 646,000 118,000 X 1. Beg. Bal. f. 9 c. 48,000 End. Bal. 214,000 End, Bal. Accounts Payable Salaries and Wages Payable Beg Bal. Beg. Bal 646,000 C 17,400 X . 68,200 x e 85,600 End. Bal 646,000 End. Bal. Sales Cost of Goods Sold Beg. Bal Beg. Bal 1,450,000 g 1. X 610,000 End, Bal 1,450,000 End. Bal. 610,000