Lubricants, Incorporated, produces a special kind of grease that is widely used by race car drivers....
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66559da5dbf32_94966559da5d4fa2.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66559da65ecd1_95066559da655c40.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66559da6a379f_95066559da69de81.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66559da6d52ec_95066559da6ced4b.jpg)
Transcribed Image Text:
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 available for the Refining Department for March: Work in Process-Refining Department Debit March 1 balance Materials Direct labor Overhead 32,300 Credit Completed and transferred to Blending ? 142,600 72,200 481,000 March 31 balance ? The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,800; direct labor, $3,700; and overhead, $20,800. Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $17,000; and overhead cost applied to production, $98,000. 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, $636,000. (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, $652,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $770,000. g. Completed units were sold on account, $1,420,000. The Cost of Goods Sold was $650,000. 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 available for the Refining Department for March: Work in Process-Refining Department Debit March 1 balance Materials Direct labor Overhead 32,300 Credit Completed and transferred to Blending ? 142,600 72,200 481,000 March 31 balance ? The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,800; direct labor, $3,700; and overhead, $20,800. Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $17,000; and overhead cost applied to production, $98,000. 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, $636,000. (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, $652,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $770,000. g. Completed units were sold on account, $1,420,000. The Cost of Goods Sold was $650,000.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Refer to Table 1.1 for large-stock and T-bill returns for the period 1973-1977: a. Calculate the observed risk premium in each year for the common stocks. b. Calculate the average returns and the...
-
Give the bonded-atom lone-pair arrangement and the molecular shape of the following species. (a) SeO 2 (b) N 2 O (N is the central atom) (c) H 3 O (d) IF 5 (e) SCl 4
-
define and describe control;
-
This chapter stressed the importance of information technology for understanding how accounting information systems operate. But is this the only skill valued by employers? How important do you think...
-
e response time to an emergency call is the difference between the time the call is first received by the dispatcher and the time a patrol car radios that it has arrived at the scene. Over a I d of...
-
Consider the UML diagram used to model Steves Stylin Sunglasses (SSS) sales data. Draw a new UML diagram assuming that SSS sells mass-produced brand-name sunglasses instead of custom sunglasses?
-
Use the following information to answer the question. C = $300 billion + 0.75(Yd), I = $450 billion. Equilibrium is at income (real GDP) equal to _____.
-
Jurupa Ltd, a construction company based in Kondinin, Madron has been awarded a contract by the Cricket World Cup Federation Committee to build the concrete stadium seats for the new stadium located...
-
Addresses numerous important aspects of electronic health records that are important foundational issues. Discuss and explain the importance of these processes Expalin any differences in the...
-
The basis for your work will be the knowledge gained in this module related to the types of stakeholders which interact with a company, normative ethical theories used in making an ethical decision,...
-
KASPARIAN CORPORATION uses a standard costing system. Under expected operating conditions, a standard of 2 lbs. of material per unit has been established. The following addition information is...
-
Explain the term "misstatement" as it applies to sampling during substantive procedures and explain how the term may be interpreted differently by different auditors.
-
estimating textbook
-
Intermediate* A construction company has the following data concerning one of its contracts: The profit (to the nearest 1000) to be attributed to the contract is Contract price Value certified Cash...
-
Intermediate: Stores pricing and preparation of the stores control account A company operates an historic batch costing system, which is not integrated with the financial accounts, and uses the...
-
Intermediate: Stores Pricing Z Ltd had the following transactions in one of its raw materials during April You are required to: (a) write up the stores ledger card using (i) FIFO and (ii) LIFO...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App