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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

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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 31,900 Completed and transferred to Blending Materials 143,600 69,200 Overhead 472,000 March 31 balance ? Direct labor 7 The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7.200; direct labor, $4,300, and overhead, $20,400. Costs incurred during March in the Blending Department were: materials used, $46,000; 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. a. Raw materials used in production b. Direct labor costs incurred. c. Manufacturing overhead costs incurred for the entire factory, $626,000. (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. t. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $800,000 g. Completed units were sold on account, $1,470,000. 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 a. Raw materials used in production b. Direct labor costs incurred. c. Manufacturing overhead costs incurred for the entire factory, $626,000. (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, Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $800,000. g. Completed units were sold on account, $1,470,000. 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.) Raw materials Work in process-Blending Department Finished goods $ 205,600 $ 40,000 $ 16,000 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 (9) below. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Transactions Debit Credit 1 General Journal Work in processRefining Department Raw materials o 143,600 143,600 x 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 (9) below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transactions Credit 1 General Journal Work in process-Refining Department Raw materials Debit 143,600 143,600 2 b. Work in process-Refining Department Salaries and wages payable 69,200 69.200 3 C Manufacturing overhead Accounts payable 626,000 OO > 626,000 4 d Work in process Refining Department Manufacturing overhead > 472,000 . 472.000 > 5 Work in process Blending Department Work in process-Refining Department 662,000 662,000 6 1 Finished goods Work in processBlending Department 800,000 800,000 7 (1) Accounts receivable Sales 1,470,000 >> 1,470,000 8 912) Cost of goods sold Finished goods 670,000 670,000

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