Question

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

As per policy, only four parts of a question is allowed, here answering 7 parts from a to g :

Req 1) journal entries:
date	accounts title	debit $	credit $
a	WIP - refining	495000
	RM		495000
	Rm purchased
b	WIP - refining	72000
	Payroll		72000
	labor applied
c	Manuf. Overhead	225000
	Account Payable		225000
	Overhead incurred
d	WIP - refining	181000
	Manuf. Overhead		181000
	(overhead applied)
e	Tranf. To Blending	740000
	WIP - refining		740000
	Transferred to blending
f	Finished Goods	950000
	WIP-Blending		950000
	Transferred to FG from Blending
g	AR	1500000
	Sales revenue		1500000
	Sales booked
	COGS	900000
	Finished Goods		900000
	(COGS booked)
BLENDING JOURNAL ENTRIES:
a	WIP - blending	115000
	RM		115000
	(RM applied)
b	WIP - blending	18000
	Payroll		18000
	(labor applied)
c	WIP - blending	181000
	Produ. Overhead		181000
	(overhead applied)