Fryer's Choice produces a specially blended vegetable oil widely used in restaurant deep fryers. The blending process creates a cooking oil that can be heated to a high temperature, but does not smoke or smell. The oil is produced in two departments: Blending and Bottling. Raw materials are introduced at various points in the Blending Department. The following incomplete Work in Process T-account is available for the Blending Department for March: Work in Process-Blending $38,000 Completed and transferred to Bottling (_? litres) $??? March 1 balance (20,000 litres; materials 100% complete; labour and overhead 90% complete) March costs added: Oils (390,000 litres) Direct labour Overhead 495,000 72,000 181,000 March 31 inventory (40,000 litres; materials 75% complete, labour and overhead 25% complete) $??? The March 1 beginning inventory in the Blending Department consists of the following cost elements: raw materials, $25,000; direct labour, $4,000; and overhead, $9,000. Costs incurred during March in the Bottling Department were materials used, $115,000; direct labour, $18,000; and overhead cost applied to production, $42,000. The company uses the weighted-average method in its process costing. Required: 1. Prepare journal entries to record the cost incurred in both the Blending Department and the Bottling Department during March. Key your entries to the items (a) through (f) below: a. Raw materials were issued for use in production b. Direct labour costs were incurred. c. Manufacturing overhead costs for the entire factory were incurred: $225,000. (Hint: Credit Accounts Payable.) d. Manufacturing overhead cost was applied to production using a predetermined overhead rate. e. Units that were complete with respect to processing in the Bottling Department were transferred to finished goods: $950,000. f. Completed units were sold on account: $1,500,000. The cost of goods sold was $890,000. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 Raw materials were issued for use in production Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 2. Post the journal entries from requirement 1 above to T-accounts. The following account balances existed at the beginning of March. (Note: The beginning balance in the Blending Department's Work in Process account is given above.) Raw materials Work in Process-Bottling Department Finished Goods $681,000 $ 65,000 $ 20,000 After posting the entries to the T-accounts, find the ending balance in the inventory accounts and the manufacturing overhead accounts. Work in Process-Bottling Department Beg. Bal. Work in Process-Blending Department Beg. Bal. End. Bal. End. Bal. Manufacturing Overhead Finished Goods Beg. Bal. Beg. Bal. End. Bal. End. Bal. Raw Materials Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries and Wages Payable Sales Beg. Bal. Beg. Bal. Work in ProcessBottling Department Beg. Bal. Work in Process-Blending Department Beg. Bal. End. Bal. End. Bal. O Manufacturing Overhead Finished Goods Beg. Bal. Beg. Bal. End. Bal. End. Bal. Raw Materials Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries and Wages Payable Sales Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Receivable Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal. End. Bal. 3. Prepare a production report for the Blending Department for March. (Round "Cost per equivalent unit" answers to 2 decimal places.) Equivalent Units (EU) Material Labour Overhead Units accounted for as follows: Transferred to Bottling Work in process March 31 Total units and equivalent units of production Costs per equivalent unit: Total cost Material Labour Overhead Cost to be accounted for: Work in process, March 1 Cost added by the Blending Department Total cost Equivalent units of production Cost per equivalent unit 4. Prepare the journal entry to record the transfer of finished goods from the Blending Department to the Bottling Department and post to the appropriate T-accounts prepared in requirement 2 above. View transaction list Journal entry worksheet Record the entry to transfer of finished goods from the Blending Department to the Bottling Department Note: Enter debits before credits. General Journal Debit Credit Event 1 Record entry Clear entry View general journal Fryer's Choice produces a specially blended vegetable oil widely used in restaurant deep fryers. The blending process creates a cooking oil that can be heated to a high temperature, but does not smoke or smell. The oil is produced in two departments: Blending and Bottling. Raw materials are introduced at various points in the Blending Department. The following incomplete Work in Process T-account is available for the Blending Department for March: Work in Process-Blending $38,000 Completed and transferred to Bottling (_? litres) $??? March 1 balance (20,000 litres; materials 100% complete; labour and overhead 90% complete) March costs added: Oils (390,000 litres) Direct labour Overhead 495,000 72,000 181,000 March 31 inventory (40,000 litres; materials 75% complete, labour and overhead 25% complete) $??? The March 1 beginning inventory in the Blending Department consists of the following cost elements: raw materials, $25,000; direct labour, $4,000; and overhead, $9,000. Costs incurred during March in the Bottling Department were materials used, $115,000; direct labour, $18,000; and overhead cost applied to production, $42,000. The company uses the weighted-average method in its process costing. Required: 1. Prepare journal entries to record the cost incurred in both the Blending Department and the Bottling Department during March. Key your entries to the items (a) through (f) below: a. Raw materials were issued for use in production b. Direct labour costs were incurred. c. Manufacturing overhead costs for the entire factory were incurred: $225,000. (Hint: Credit Accounts Payable.) d. Manufacturing overhead cost was applied to production using a predetermined overhead rate. e. Units that were complete with respect to processing in the Bottling Department were transferred to finished goods: $950,000. f. Completed units were sold on account: $1,500,000. The cost of goods sold was $890,000. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 Raw materials were issued for use in production Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 2. Post the journal entries from requirement 1 above to T-accounts. The following account balances existed at the beginning of March. (Note: The beginning balance in the Blending Department's Work in Process account is given above.) Raw materials Work in Process-Bottling Department Finished Goods $681,000 $ 65,000 $ 20,000 After posting the entries to the T-accounts, find the ending balance in the inventory accounts and the manufacturing overhead accounts. Work in Process-Bottling Department Beg. Bal. Work in Process-Blending Department Beg. Bal. End. Bal. End. Bal. Manufacturing Overhead Finished Goods Beg. Bal. Beg. Bal. End. Bal. End. Bal. Raw Materials Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries and Wages Payable Sales Beg. Bal. Beg. Bal. Work in ProcessBottling Department Beg. Bal. Work in Process-Blending Department Beg. Bal. End. Bal. End. Bal. O Manufacturing Overhead Finished Goods Beg. Bal. Beg. Bal. End. Bal. End. Bal. Raw Materials Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries and Wages Payable Sales Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Receivable Cost of Goods Sold Beg. Bal. Beg. Bal. End. Bal. End. Bal. 3. Prepare a production report for the Blending Department for March. (Round "Cost per equivalent unit" answers to 2 decimal places.) Equivalent Units (EU) Material Labour Overhead Units accounted for as follows: Transferred to Bottling Work in process March 31 Total units and equivalent units of production Costs per equivalent unit: Total cost Material Labour Overhead Cost to be accounted for: Work in process, March 1 Cost added by the Blending Department Total cost Equivalent units of production Cost per equivalent unit 4. Prepare the journal entry to record the transfer of finished goods from the Blending Department to the Bottling Department and post to the appropriate T-accounts prepared in requirement 2 above. View transaction list Journal entry worksheet Record the entry to transfer of finished goods from the Blending Department to the Bottling Department Note: Enter debits before credits. General Journal Debit Credit Event 1 Record entry Clear entry View general journal