Question

Problem 4-17 Cost Flows [LO 4-1] 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: Work in Process-Refining Department Completed and transferred to Blending March 1 balance Materials Direct labor Overhead 32,400 156,600 77,200 478,000 March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,200; direct labor, $4,200; and overhead, $21,000. Costs incurred during March in the Blending Department were: materials used, $45,000; direct labor, $16,500; and overhead cost applied to production, $104,000.

Answer 1

Event	Account Titles	Debit	Credit
a	Work in Process - Refining Department	156600
	Work in Process - Blending Department	45000
	Raw Materials		201600
b	Work in Process - Refining Department	77200
	Work in Process - Blending Department	16500
	Salaries and Wages payable		93700
c	Manufacturing overhead	616000
	Accounts Payable		616000
d	Work in Process - Refining Department	478000
	Work in Process - Blending Department	104000
	Manufacturing overhead		582000
e	Work in Process - Blending Department	632000
	Work in Process - Refining Department		632000
f	Finished goods	760000
	Work in Process - Blending Department		760000
g	Accounts Receivable	1370000
	Sales		1370000
	Cost of goods sold	670000
	Finished goods		670000