Problem 5-17 Cost Flows [LO 5-1] 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 38.000 Completed and transferred to Blonding Materials 495.000 Direct Labor 72,000 Overhead 181,000 March 31 balance The March 1 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 lobor, $18,000, and overhead cost applied to production, $42.000 Required: Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March Key your entries to the items () through to below applied to production, $42,000. 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. $225,000. (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, $740,000 Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $950,000. g. Completed units were sold on account, $1,500,000. The Cost of Goods Sold was $900,000. 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.) RAM materials Work in process-Blending Department Finished goods $ 618,000 65,000 $20.000 Required 1 Required 2 Post the journal entries from Requirement 1 to T-accounts. Accounts Receivable Raw Materials Beg Bal. Beg Bal. End. Bal Work in Process -Refining Department Work in Process Blending Department Beg Bal Beg Bal Finished Goods Manufacturing Overhead Beg. Bal. Beg Bal. End. Bal. 0 0 End, Bal Accounts Payable Salaries and Wages Payable Beg Bal. Beg. Bal End. Bal 0 End. Bal. Sales Cost of Goods Sold Beg Ba Beg Bal End. Bal