PROBLEM 4-7 Preparing Journal Entries, Production Reports-Weighted Average Cost Method and FIFO Method [LO2-CC8; LO3-CC11; LO4-CC12, 13, 14; LO5-CC15, 16; LO6-CC17] Excel Template: Problem 4-7 CHECK FIGURE (2) March 31 Refining Dept. WIP: $46,000 Lubricants, Inc. produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processes: refining and blending. Raw oil products are introduced at various points in the Refining Department; labour and overhead costs are incurred evenly throughout the refining operation. The refined output is then transferred to the Blending Department. The following incomplete work-in-process account is available for the refining department for March: Work in Process-Refining Department March 1 inventory (20,000 litres; 100% complete as to materials; 90% complete as to labour and overhead) March costs added: Raw oil materials (390,000 litres) Direct labour Overhead March 31 inventory (40,000 litres; 75% complete as to materials; 25% complete as to labour and overhead) Completed and transferred $ 38,000 to Blending Department (2 litres) 495,000 72,000 181,000 2