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Lubricants, Incorporated, 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, Incorporated, 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 avalable for the Refining Deparment for March: The March 1 work in process inventory in the Refining Department consists of the following elements: materials, 57,200 , direct labor, $4,600, and overheod, $20,500. Costs incurred during March in the Blending Department were: materials used, $46,000, direct labot, $16,400, ond overhead cost applied to production, $112,000 Required: 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Deparment 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, $632,000. f Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, 5750,000 . 9. Completed units were sold on account, $1,410,000 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 345678 Record issuance of raw materials to Refining and Blending Department. Notet Enter debits before credits. Work in Process - Blending Department Manutacturing Overhead Acoounts Payable Fataries and Wages. Payable

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