Problem 4-16 Cost Flows [LO1]

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	33,500		Completed and transferred to Bottling (760,000 ounces)	?
Materials	138,600
Direct labor	63,200
Overhead	477,000
March 31 balance	?

The $33,500 beginning inventory in the Blending Department consisted of the following elements: materials, $8,100; direct labor, $3,600; and overhead applied, $21,800.

Costs incurred during March in the Bottling Department were: materials used, $45,000; direct labor, $16,800; and overhead cost applied to production, $106,000.

Required:

1.	Prepare journal entries to record the costs incurred in both the Blending Department and Bottling Department during March. (Omit the "$" sign in your response.)

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, $626,000. (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, $642,000.
f.	Units that were complete with respect to processing in the Bottling Department were transferred to Finished Goods, $710,000.
g.	Completed units were sold on account for $1,450,000. The cost of goods sold was $600,000.