Question

Can you answer the require 2 and 3 only, 1 is solved in another post by another expert.

ey race car drivers The grease is prodoed n ABC Camodus a social kind of grease that is widely wsed ry intrudced at variou, poent, İ" the Refining prosses efinig and ending Raw ail prodct a labor and overhead costs are incurred evenily through the refining opertion a the Blending Depatmend. The following incomplete Week in Process account is avaiiable for the The refined output is shen Deparmont for March Refining Departiment We 100% complete s to materials; w0%s complete as te labor and evericad) 38,000 March cots added s 495,000 Raw materials 090,000 pal Direct labor S 72,000 181,000 March 31 Inviestory (40,000 gal 75% complete as to materials; 29% oonpletons to laborand overhead) 2 The Mareh 1 Wark in Process iventory in the Refining Department coesists of the folowing cost elements: raw material%25.000, direcr labor, S4,000, and overhead, $9.000 Conts incured during March in the Biending Department were: niaterials used $115,000; direct labor, $18,000; and overhend coat upplied to grotaction, $42,000. The conipany nccounts for units and costs by the weighted-average method Required: . Prepare joumal to record the costs incurred in both the Retining Department and Blending Department during March, Key your entries to the ihems (o) through (g) below a. Rew materials were issued for the use in prodaction h. Drect labor costs were incurred c. Manufacturing overlticad coits for the entire factory were incurred, 5225,000 all on credit d. Manufacturing overhead cost was applied to productiun using predetermined overhead rate e. Uinits thut were complete as to processing itn the efining Department were transferred to Blending Department, $740,000 r Unins that wore complete as to processing in the Blending Deparment were transferred to Finished Goods, $950,000 z Completed units were sold on account, $1,500,000. The cost of goods sold was $900,000, 2. Pust the journal entries from () above to T-accounts The foilowing account balances existed at the beginning of March. (The beginning balance in the Refining Department's Work in Process account is given abeve) e Materials Raw Materials Work in Process-Blending Dept. Firished Goods s 618,000 65,000 20,000 After posting the entries to the T-accounts, find the eriding halance in the inventory accounts and the manufacturing overbead accounts 3, Prepate 3. Propare a prodnction report for the Refining Department for March

Answer 1

Policy is one question at a time, so kindly find Req 2 and Req 3 solved hereunder:

Req 2) T-Accounts:
Refining Department:
Raw Material Account
DEBIT	AMOUNT	CREDIT	AMOUNT
OB	618000	WIP-refining	495000
		CB	123000
Total	618000	Total	618000
WIP-refining Account
OB	38000	WIP-Blending	740000
Direct Material	495000	CB	46000
Direct Labor	72000
Overhead	181000
Total	786000	Total	786000
Manufacturing Overhead Account:
Account Payable	225000	WIP - refining	181000
		CB	44000
Total	225000	Total	225000
Blending Department:
WIP-blending Account
OB	65000	Finished Goods	950000
WIP-refining Account	740000	CB	30000
Direct Material	115000
Direct Labor	18000
Overhead	42000
Total	980000	Total	980000
CLOSING BALANCE OF INVENTORY = $123000 & MANUFACTURING OVERHEAD = $44000
Req. 3) Production Report for the Refining Department for March:
(on Weighted average costing method WACM)
	Physical Units	Material	Labor	Overhead	Total
wip -ob (on WACM)	20000	20000	20000	20000
Started and Completed	350000	350000	350000	350000
Transf. to Blending	370000
wip - cb	40000	30000 (75%)	10000 (25%)	10000 (25%)
Equivalent units		400000	380000	380000
Total Costs
wip ob		25000	4000	9000
Incurred in March		495000	72000	181000
Total Costs		520000	76000	190000
Cost per Eq unit		1.3	0.2	0.5	2
Cost of Tranf. To blending		370000*1.3=481000	370000*0.2=74000	370000*0.5=185000	740000
Cost of WIP-CB		30000*1.3=39000	10000*0.2=2000	10000*0.5=5000	46000