Problem $4-17($Algo$)$ Cost Flows $[$LO $4-1]$

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:

Work in Process$$Refining Department

March $1$ balance $33,300$ Completed and transferred

to Blending $?$

Materials $149,600$

Direct labor $73,200$

Overhead $483,000$

March $31$ balance $?$

The March $1$ work in process inventory in the Refining Department consists of the following elements: materials, $$7,500$; direct labor, $$4,300$; and overhead, $$21,500.$

Costs incurred during March in the Blending Department were: materials used, $$45,000$; direct labor, $$17,700$; and overhead cost applied to production, $$102,000.$

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.

Raw materials used in production.

Direct labor costs incurred.

Manufacturing overhead costs incurred for the entire factory, $$696,000.($Credit Accounts Payable.$)$

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

Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $$672,000.$

Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $$730,000.$

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

$2.$ 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 Refining Department$$s Work in Process is given in the T$-$account shown above.$)$

Raw materials $ $209,600$

Work in process$$Blending Department $ $54,000$

Finished goods $ $15,000$