Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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: The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,100; direct labor, $4,400; and overhead, $21,600. Costs incurred during March in the Blending Department were: materials used, $44,000; direct labor, $16,100; and overhead cost applied to production, $113,000. 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, $652,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $710,000 9. Completed units were sold on account, $1,310,000. The Cost of Goods Sold was $660,000. 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.) Complete this question by entering your answers in the tabs below. 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 2345678 Record issuance of raw materials to Refining and Blending Department. Note: Enter debits before creats. Post the journal entries from Requirement 1 to T-accounts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Belverd E. Needles

5th Edition

0395698022, 978-0395698020

More Books

Students also viewed these Accounting questions

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago

Question

What is meant by organisational theory ?

Answered: 1 week ago

Question

What is meant by decentralisation of authority ?

Answered: 1 week ago