Question

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: March 1 balance Work in Process-Refining Department 32,400 | Completed and transferred to Blending 155,600 71,200 484,000 Materials Direct labor Overhead March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,300, direct labor, $3,900; and overhead, $20,200. Costs incurred during March in the Blending Department were: materials used, $45,000, direct labor, $17,300; and overhead cost applied to production, $113,000. 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.