Lubricants, Incorporated, produces a special kind of grease 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 Credit

March $1$ balance $34,100$ Completed and transferred to Blending $?$question mark

Materials $145,600$

Direct labor $81,200$

Overhead $489,000$

March $31$ balance $?$question mark

The March $1$ work in process inventory in the Refining Department includes materials, $$8,500$; direct labor, $$4,600$; and overhead, $$21,000.$

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:

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.

Raw materials used in production.

Direct labor costs incurred.

Manufacturing overhead costs incurred for the entire factory, $$686,000.($Credit Accounts Payable.$)$

Manufacturing overhead was applied to production using a predetermined overhead rate.

Units completed in the Refining Department were transferred to the Blending Department, $$692,000.$

Units completed in the Blending Department were transferred to Finished Goods, $$800,000.$

Completed units were sold on account, $$1,480,000.$ The Cost of Goods Sold was $$690,000.$

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 $ $205,600$

Work in process$$Blending Department $ $47,000$

Finished goods $ $27,000$