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 $34,200$ Completed and transferred to Blending $?$question mark

Materials $142,600$

Direct labor $77,200$

Overhead $473,000$

March $31$ balance $?$question mark

The March $1$ work in process inventory in the Refining Department includes materials, $$8,200$; direct labor, $$4,900$; and overhead, $$21,100.$

Costs incurred during March in the Blending Department were materials used, $$44,000$; direct labor, $$16,400$; and overhead cost applied to production, $$115,000.$

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, $$706,000.($Credit Accounts Payable.$)$

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

Units completed in the Refining Department were transferred to the Blending Department, $$642,000.$

Units completed in the Blending Department were transferred to Finished Goods, $$700,000.$

Completed units were sold on account, $$1,470,000.$ The Cost of Goods Sold was $$640,000.$

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 $ $213,600$

Work in process$$Blending Department $ $52,000$

Finished goods $ $20,000$