March 31 Refining Dept. WIP: $46,000 Lubricants, Inc. produces a special kind of grease that is widely used on race cars. The grease is produced in two processes: refining and blending. Raw oil products are introduced at various points in the Refining Department; labour and overhead costs are incurred evenly throughout the refining operation. The refined output is then transferred to the Blending Department. The following incomplete work-in-process account is available for the Refining Department for March: Page 174 Work in Process-Refining Department March 1 inventory (20,000 litres: 100% complete as to materials: 90% complete $38,000 Completed and transferred to Blending as to labour and overhead) March costs added Raw oil materials (390,000 litres) Department (2 litres) 4 495,000 72,000 181,000 Direct labour Overhead March 31 inventory (40,000 litres; 75% complete as to materials; 25% complete $? as to labour and overhead) 2 The March 1 work-in-process inventory in the Refining Department consists of the following cost elements: raw materials, $25,000; direct labour. $4,000; overhead, $9,000. Costs incurred during March in the Blending Department were as follows: materials used, $115,000; direct labour, $18,000; overhead cost applied to production, $42,000. The company accounts for units and costs by the weighted average cost method.