Lubricants, Incorporated, 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 Debit March 1 balance Materials Direct labor Overhead March 31 Balance Work in Process-Refining Department Credit 31,400 Completed and transferred to olendin 153,600 76.200 473,000 The March 1 work in process inventory in the Refining Department consists of the following elements: materials $7700, direct labor $3,500 and overhead, $20,200. Costs incurred during March in the Blending Department were materials used. $45.000, direct labor. $17700; and overhead cost applied to production, $106.000 Costs incurred during March in the Blending Department were materials used, 545,000, direct labor. $17/00, and overhead cost applied to , 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 (s) below. a. Raw materials used in production b Direct labor costs incurred c. Manufacturing overhead costs incurred for the entire factory, $626,000. (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, 5672,000 Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $760,000. Completed units were sold on account. $1,300,000. The cost of Goods Sold was $610.000. 2. Pout 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) materials 5 207,600 work in processlending Departet Fished goods $ 40,000 $ 21,000 Complete this question by entering your answers in the tabs below. Peguard Fegured 2 Required 1 Required 2 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 (9) below. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record issuance of raw materials to Refining and Blending Department. Not Enter debits before credits Transactions General Journal Debit Credit Required 1 Rewired 2 Post the journal entries from Requirement 1 to Taccounts Accounts Receivable Raw Materials Debit Beginning Balance Credit Credit Debit Beginning Balance Ending Balance Ending Balance Work in Process-Refining Department Debit Credit Beginning Balance Work in Process Blending Department Debit Credit Beginning Balance Ending Balance Ending Balance Finished Goods Creda Manufacturing Overhead Debit Beginning Balance Debit Beginning Balance Credit Ending Balance Ending Balance Finished Goods Credit Manufacturing Overhead Debit Beginning Balance Debit Beginning Balance Credit Ending Balance Ending Balance Accounts Payable Credit Salaries and Wages Payable Debit Beginning Balance Debit Beginning Balance Credit Ending Balance Ending Balance Sales Cost of Goods Sold Debit Credit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance
