Pure Botanicals, Inc. keeps one of its production facilities busy making a perfume called Lily of the Valley. 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	36,890		Completed and transferred to Bottling (760,000 ounces)	?
Materials	154,400
Direct labor	74,800
Overhead	523,600
March 31 balance	?

The $36,890 beginning inventory in the Blending Department consisted of the following elements: materials, $7,720; direct labor, $2,990; and overhead applied, $26,180.

Costs incurred during March in the Bottling Department were: materials used, $42,000; direct labor, $19,000; and overhead cost applied to production, $114,000.

Required:

1.	Prepare journal entries to record the costs incurred in both the Blending Department and Bottling Department during March. Key your entries to 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, $788,000. (All the overheads are on account 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, $650,000.
f.	Units that were complete with respect to processing in the Bottling Department were transferred to Finished Goods, $780,000.
g.	Completed units were sold on account for $1,396,000. The cost of goods sold was $658,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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 Blending Departments Work in Process account is given above.)

Raw materials	$	212,800
Work in process-Bottling department	$	45,500
Finished goods	$	12,000

After posting the entries to the T-accounts, find the ending balances in the inventory accounts and the manufacturing overhead account.

Accounts Receivable					Raw Materials
Beg. bal.					Beg. bal.
End. bal.					End. bal.
Work in Process - Blending Department					Work in Process - Bottling Department
Beg. bal.					Beg. bal.
End. bal.
					End. bal.
Finished Goods					Manufacturing Overhead
Beg. bal.					Beg. bal.
End. bal.					End. bal.
Accounts Payable					Salaries and Wages Payable
Beg. bal.					Beg. bal.
End. bal.					End. bal.
Sales					Cost of Goods Sold
Beg. bal.					Beg. bal.
End. bal.					End. bal.