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 March 1 balance Debit Materials Direct labor Overhead March 31 balance 33, 100 148,600 63,200 476,000 2 Credit Completed and transferred to Blending The March 1 work in process Inventory in the Refining Department consists of the following elements: materials, $8,600; direct labor, $3,700; and overhead, $20,800. Costs incurred during March in the Blending Department were: materials used, $44,000; direct labor, $16,100; 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, $676,000. (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, $682,000. Raw materials Work in process-Blending Department Finished goods f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $720,000. g. Completed units were sold on account, $1,350,000. The Cost of Goods Sold was $680,000. 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.) $ 205,600 $ 52,000 $ 17,000 Complete this question by entering your answers in the tabs below. Journal entry worksheet 1 2 Transactions a. 3 Record issuance of raw materials to Refining and Blending Department. Note: Enter debits before credits. Record entry 4 5 6 7 8 General Journal Work in process-Refining Department Work in process-Blending Department Clear entry Debit Credit View general journal Journal entry worksheet 1 2 < 3 Record direct labor cost incurred for Refining and Blending Department. Note: Enter debits before credits. Transactions b. Record entry 4 5 6 7 8 General Journal Clear entry Debit Credit View general journal Journal entry worksheet 2 3 < 1 Record manufacturing overhead costs incurred for the entire factory. Note: Enter debits before credits. Transactions C. 4 5 6 7 8 Record entry General Journal Clear entry Debit Credit View general journal Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transactions d. Record entry to apply overhead cost to production at a predetermined rate to the Refining Department and Blending Department. 4 Record entry 5 6 7 8 General Journal Clear entry Debit Credit View general journal Journal entry worksheet 1 2 Note: Enter debits before credits. Transactions 3 e. Record transfer of semi finished units from Refining to Blending Department. Record entry 4 5 General Journal 6 7 8 Clear entry Debit Credit View general journal Journal entry worksheet 1 2 Transactions f. 3 Note: Enter debits before credits. Record entry 4 5 6 Record the transfer of completed units from the Blending Department to finished goods. General Journal 7 Clear entry 00 Debit Credit View general journal Journal entry worksheet 1 2 < Record sales on account. 3 4 5 6 Note: Enter debits before credits. Transactions g(1). Record entry General Journal Clear entry 7 8 Debit Credit View general journal Journal entry worksheet < 1 2 3 4 5 6 7 Record cost of goods sold. Note: Enter debits before credits. Transactions g(2). Record entry General Journal Clear entry 8 Debit Credit View general journal Beginning Balance Ending Balance Ending Balance Beginning Balance Debit Ending Balance Beginning Balance Ending Balance Work in Process-Refining Department Debit Debit Ending Balance Beginning Balance Debit Debit Beginning Balance Accounts Receivable Finished Goods 0 Accounts Payable Credit Sales Credit Credit 0 Credit 0 Credit 0 Beginning Balance Ending Balance Ending Balance Beginning Balance Debit Ending Balance Beginning Balance Ending Balance Work in Process-Blending Department Debit Debit Ending Balance Beginning Balance Debit Beginning Balance Raw Materials Debit Salaries and Wages Payable Manufacturing Overhead Credit Cost of Goods Sold Credit Credit 0 Credit 0 Credit 0