PROBLEM 4-17 Cost Flows (L04-1] Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers grease is produced in two processing departments: Refining and Blending. Raw material introduced at various points in the Refining Department. The s are The following incomplete Work in Process account is available for the Refining Department for March: Work in Process-Refining Department March 1 balance 38,000 Completed and transferred to Blending 495,000 72,000 Materials Direct labor Overhead March 31 balance 181,000 The March I work in process inventory in the Refining Department consists of the following elements: materials, $25,000; direct labor, $4,000: and overhead, $9,000. Costs incurred during March in the Blending Department were: materials used, $115.000; direct labor, $18,000; and overhead cost applied to production, $42,000. Required: I. 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 were issued for use in production. b. Direct labor costs were incurred. c. Manufacturing overhead costs for the entire factory were incurred, $225,000. (Credit Accounts Payable.) d. Manufacturing overhead cost was applied to production using a predetermined overhead e. Units that were complete with respect to processing in the Refining Department were rate transferred to the Blending Department, $740,000