Natures Way, Inc., keeps one of its production facilities busy making a perfume called Essence de la Vache. The perfume goes through two processing departments: Blending and Bottling.

The following incomplete Work in Process account is provided for the Blending Department for March:

Work in ProcessBlending

March 1 balance	32,400		Completed and transferred to Bottling (760,000 ounces)	?
Materials	141,600
Direct labor	77,200
Overhead	483,000
March 31 balance	?

The $32,400 beginning inventory in the Blending Department consisted of the following elements: materials, $8,100; direct labor, $3,500; and overhead applied, $20,800.

Costs incurred during March in the Bottling Department were: materials used, $45,000; direct labor, $16,200; and overhead cost applied to production, $114,000.

Required:

1.	Prepare journal entries to record the costs incurred in both the Blending Department and Bottling Department during March.

a.	Raw materials were issued for use in production.
b.	Direct labor costs were incurred.
c.	Manufacturing overhead costs for the entire factory were incurred, $656,000. (Credit Accounts Payable and use a single Manufacturing Overhead control account for the entire factory.)
d.	Manufacturing overhead was applied to production using a predetermined overhead rate.
e.	Units that were complete with respect to processing in the Blending Department were transferred to the Bottling Department, $682,000.
f.	Units that were complete with respect to processing in the Bottling Department were transferred to Finished Goods, $720,000.
g.	Completed units were sold on account for $1,490,000. The cost of goods sold was $640,000.

Items	General Journal	Debit	Credit
a.	(Click to select)Manufacturing overheadWork in process-BlendingSalaries and wages payableAccounts receivableFinished goodsCost of goods soldRaw materialsWork in process-Bottling
	(Click to select)Finished goodsSalaries and wages payableWork in process-BlendingManufacturing overheadRaw materialsCost of goods soldAccounts receivableWork in process-Bottling
	(Click to select)Raw materialsManufacturing overheadWork in process-bottlingCost of goods soldAccounts receivableWork in process-blendingSalaries and wages payableFinished goods
b.	(Click to select)Accounts receivableWork in process-BlendingWork in process-BottlingCost of goods soldRaw materialsManufacturing overheadFinished goodsSalaries and wages payable
	(Click to select)Manufacturing overheadFinished goodsCost of goods soldWork in process-BlendingAccounts receivableWork in process-BottlingSalaries and wages payableRaw materials
	(Click to select)Accounts receivableManufacturing overheadWork in process-BottlingFinished goodsSalaries and wages payableWork in process-BlendingRaw materialsCost of goods sold
c.	(Click to select)Raw materialsFinished goodsSalaries and wages payableWork in process-BottlingCost of goods soldManufacturing overheadAccounts receivableWork in process-Blending
	(Click to select)Cost of goods soldWork in process-BlendingAccounts receivableWork in process-BottlingAccounts payableFinished goodsSalaries and wages payableManufacturing overhead
d.	(Click to select)Manufacturing overheadRaw materialsCost of goods soldWork in process-BottlingSalaries and wages payableFinished goodsAccounts receivableWork in process-Blending
	(Click to select)Raw materialsWork in process-BlendingSalaries and wages payableCost of goods soldFinished goodsAccounts receivableManufacturing overheadWork in process-Bottling
	(Click to select)Accounts payableSalesSalaries and wages payableWork in process-BottlingManufacturing overheadCost of goods soldFinished goodsAccounts receivable
e.	(Click to select)Finished goodsWork in process-BottlingAccounts receivableManufacturing overheadCost of goods soldWork in process-BlendingRaw materialsAccounts payable
	(Click to select)Raw materialsCost of goods soldAccounts receivableAccounts payableWork in process-BlendingFinished goodsWork in process-BottlingManufacturing overhead
f.	(Click to select)Accounts payableCost of goods soldRaw materialsWork in process-BottlingAccounts receivableWork in process-BlendingManufacturing overheadFinished goods
	(Click to select)Work in process-BlendingRaw materialsFinished goodsWork in process-BottlingManufacturing overheadAccounts receivableCost of goods soldAccounts payable
g.	(Click to select)Work in process-BottlingManufacturing overheadSalaries and wages payableWork in process-BlendingAccounts receivableAccounts payableRaw materialsSales
	(Click to select)Work in process-BlendingSalaries and wages payableAccounts receivableWork in process-BottlingRaw materialsManufacturing overheadSalesAccounts payable
	(Click to select)Manufacturing overheadSalaries and wages payableCost of goods soldWork in process-BottlingAccounts payableFinished goodsWork in process-BlendingRaw materials
	(Click to select)Work in process-BottlingSalaries and wages payableManufacturing overheadRaw materialsWork in process-BlendingAccounts payableCost of goods soldFinished goods

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 Blending Departments Work in Process account is given above.) (Record the transactions in the given order.)

Raw materials	$	207,600
Work in process-Bottling department	$	56,000
Finished goods	$	14,000

After posting the entries to the T-accounts, find the ending balances in the inventory accounts and the manufacturing overhead account.

Accounts Receivable

(Click to select)abcdefg

Raw Materials

Bal.			(Click to select)abcdefg
Bal.

Work in Process - Blending Department

Bal.			(Click to select)abcdefg
(Click to select)abcdefg
(Click to select)abcdefg
(Click to select)abcdefg
Bal.

Work in Process - Bottling Department

Bal.			(Click to select)abcdefg
(Click to select)abcdefg
(Click to select)abcdefg
(Click to select)abcdefg
(Click to select)abcdefg
Bal.

Finished Goods

Bal.			(Click to select)abcdefg
(Click to select)abcdefg
Bal.

Manufacturing Overhead

(Click to select)abcdefg			(Click to select)abcdefg
Bal.

Accounts Payable

			(Click to select)abcdefg

Salaries and Wages Payable

			(Click to select)abcdefg

Sales

			(Click to select)abcdefg

Cost of Goods Sold

(Click to select)abcdefg