Question

produces a special ind of this used by cards. The grease is produced in Renungand Binding m e d at various porte Ring Department The following incomplete Work in Process account is for the terning Department for March: Work in Process Refining Department Director he March 1 work in process inventory in the Refining Department consists of the following elements materia, 57,400, direct labor, 53,000, and Overhead, 521.500 Costs incurred during March in the ending Department were m e d director $1600 and overhead cost applied to production, 8111,000 Required: 1. Prepare journal s to record the costored in both the Retning Department and Binding Department Ouring March Key your entries to the tems through go below a materials used in production Direct labor costs incurred e Manufacturing overhead con curred for the entire factory. 650.000 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, 5662,000 Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, 5740.000 Completed units were sold on account 51.410.000 The cost of Goods Sold was 620 000 2. Post the journal entries from (1) above to T-accounts. The following account balances existed the beginning of March (The beginning balance in the Refining Department's Work in Process is given in the Taccount shown above) $ 211 800 $ 43,000 Work in process Blending Department nished goods todo el SinglePrint View&singleQuestionNo=3.&p... 2/18/2

Answer 1

Solution 1:

Credit Journal Entries - Lubricants Inc. Event Particulars Debit a Work In Process - Refining department Dr $155,600.00 Work In Process - Blending department Dr $46,000.00 To Raw material inventory (To record material used in production) $201,600.00 9 10 11 bo $71,200.00 $16,900.00 Work In Process - Refining department Dr Work In Process - Blending department Dr To Wages Payable (To record direct labor cost incurred) $88,100.00 $686,000.00 Manufacturing overhead Dr To Accounts Payable $696,000.00 (To record manufacturing overhead incurred) 19 d 20 $473,000.00 $111,000.00 Work In Process - Refining department Dr Work In Process - Blending department Dr To Manufacturing overhead (To apply manufacturing overhead) 21 $584,000.00 24 e $662,000.00 $662,000.00 Work In Process - Blending department Dr To Work In Process - Refining department (Being units completed in refining transferred to Blending) $740,000.00 $740,000.00 Finished goods inventory Dr To Work In Process - Blending department (Being units completed in blending transferred to finished goods) 31 32 g1 $1,410,000.00 Accounts receivables Dr To Sales Revenue (To record sales on account) 33 34 $1,410,000.00 35 g2 $620,000.00 Cost of goods sold Dr To Finished goods inventory (To record cost of goods sold) $620,000.00 38 39 40 -406 (2) Sheet390 Sheet391 Sheet385 Sheet442

Solution 2:

L K Raw materials inventory Debit Particulars $211,600.00 Material used Particulars March 1 balance Credit $201,600.00 March 31, balance $10,000.00 Particulars Credit Work In Process - Refining Debit Particulars Completed and $31,900.00 transferred to Blending $155,600.00 $662,000.00 March 1 balance Material Direct labor Overhead $71,200.00 $473,000.00 March 31, balance Particulars Credit $69,700.00 Work In Process - Blending Debit Debit . Particulars Particulars Completed and transferred to Finished $43,000.00 Goods $662,000.00 $46,000.00 $740,000.00 March 1 balance Transferred from Refining Material Direct labor Overhead $16,900.00 $111,000.00 March 31, balance $138,900.00 Particulars March 1 balance Transferred from Blending Finished Goods Inventory Debit Particulars $14,000.00 Cost of goods sold $740,000.00 Credit $620,000.00 March 31, balance $134,000.00 Manufacturing overhead Debit Particulars $686,000.00 Overhead applied Particulars Overhead incurred Credit $584,000.00 March 31, balance $102,000.00 Cost of goods sold Debit Particulars $620,000.00 Particulars Finished goods inventory Credit March 31, balance $620,000.00 Particulars Sales Revenue Debit | Particulars Accounts receivables Credit $1,410,000.00 53 March 31, balance $1,410,000.00 54 -406 (2) ) Sheet390 Sheet391 Sheet385 Sheet442