Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz help Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing

plz help image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Lubricants, Inc., 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, $8,700; direct labor, $4,900; and overhead, $21,700. Costs incurred during March in the Blending Department were: materials used, $45,000; direct labor, $16,100; and overhead cost applied to production, $105,000. 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, $696,000. (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, $632,000 f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $720,000. Journal entry worksheet Record issuance of raw materials to Refining and Blending Department. Note: Enter debits before credits. Journal entry worksheet Record direct labor cost incurred for Refining and Blending Department. Note: Enter debits before credits. Journal entry worksheet Record manufacturing expenses incurred for the whole factory. Note: Enter debits before credits. Record entry to apply overhead cost to production at a predetermined rate to the Refining Department and Blending Department. Note: Enter debits before credits. Journal entry worksheet Record transfer of semi finished units from Refining to Blending Department. Note: Enter debits before credits. Record the transfer of completed units from the Blending Department to finished goods. Note: Enter debits before credits. Note: Enter debits before credits. ivolen eruter uedics berore crealts

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

More Books

Students also viewed these Accounting questions