Solution 1:
Journal Entries - Lubricants Inc. | |||
Event | Particulars | Debit | Credit |
a | Work In Process - Refining department Dr | $137,600.00 | |
Work In Process - Blending department Dr | $46,000.00 | ||
To Raw material inventory | $183,600.00 | ||
(To record material used in production) | |||
b | Work In Process - Refining department Dr | $70,200.00 | |
Work In Process - Blending department Dr | $17,500.00 | ||
To Wages Payable | $87,700.00 | ||
(To record direct labor cost incurred) | |||
c | Manufacturing overhead Dr | $636,000.00 | |
To Accounts Payable | $636,000.00 | ||
(To record manufacturing overhead incurred) | |||
d | Work In Process - Refining department Dr | $472,000.00 | |
Work In Process - Blending department Dr | $104,000.00 | ||
To Manufacturing overhead | $576,000.00 | ||
(To apply manufacturing overhead) | |||
e | Work In Process - Blending department Dr | $692,000.00 | |
To Work In Process - Refining department | $692,000.00 | ||
(Being units completed in refining transferred to Blending) | |||
f | Finished goods inventory Dr | $790,000.00 | |
To Work In Process - Blending department | $790,000.00 | ||
(Being units completed in blending transferred to finished goods) | |||
g1 | Accounts receivables Dr | $1,440,000.00 | |
To Sales Revenue | $1,440,000.00 | ||
(To record sales on account) | |||
g2 | Cost of goods sold Dr | $690,000.00 | |
To Finished goods inventory | $690,000.00 | ||
(To record cost of goods sold) |
Solution 2:
Raw materials inventory | |||
Particulars | Debit | Particulars | Credit |
March 1 balance | $213,600.00 | Material used | $183,600.00 |
March 31, balance | $30,000.00 | ||
Work In Process - Refining | |||
Particulars | Debit | Particulars | Credit |
March 1 balance | $33,700.00 | Completed and transferred to Blending | $692,000.00 |
Material | $137,600.00 | ||
Direct labor | $70,200.00 | ||
Overhead | $472,000.00 | ||
March 31, balance | $21,500.00 | ||
Work In Process - Blending | |||
Particulars | Debit | Particulars | Credit |
March 1 balance | $47,000.00 | Completed and transferred to Finished Goods | $790,000.00 |
Transferred from Refining | $692,000.00 | ||
Material | $46,000.00 | ||
Direct labor | $17,500.00 | ||
Overhead | $104,000.00 | ||
March 31, balance | $116,500.00 | ||
Finished Goods Inventory | |||
Particulars | Debit | Particulars | Credit |
March 1 balance | $20,000.00 | Cost of goods sold | $690,000.00 |
Transferred from Blending | $790,000.00 | ||
March 31, balance | $120,000.00 | ||
Manufacturing overhead | |||
Particulars | Debit | Particulars | Credit |
Overhead incurred | $636,000.00 | Overhead applied | $576,000.00 |
March 31, balance | $60,000.00 | ||
Cost of goods sold | |||
Particulars | Debit | Particulars | Credit |
Finished goods inventory | $690,000.00 | ||
March 31, balance | $690,000.00 | ||
Sales Revenue | |||
Particulars | Debit | Particulars | Credit |
Accounts receivables | $1,440,000.00 | ||
March 31, balance | $1,440,000.00 |
Return to question Lubricants, Inc., produces a special kind of grease that is widely used by...
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 March 1 balance 31,900 Completed and transferred to Blending Materials 143,600 69,200 Overhead 472,000 March 31 balance ? Direct labor 7 The March...
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 March 1 balance 32,000 Completed and transferred to Blending ? Materials 151,600 Direct labor 73,200 Overhead 477,000 March 31 balance ? The March 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 March 1 balance 38,000 Completed and transferred to Blending ? Materials 495,000 Direct labor 72,000 Overhead 181,000 March 31 balance ? The March 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 March 1 balance 33,700 Completed and transferred to Blending Materials 145,600 Direct labor 70, 200 Overhead 486,000 March 31 balance The March 1 work...
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 32,600 Completed and transferred to Blending 155,600 69,200 481,000 Materials Direct labor Overhead March 31 balance The March 1 work in...
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 33,100 Completed and transferred to Blonding 148,680 65,200 479,000 ipped Materials Direct labor Overhead March 31 balance The March 1 work...
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 March 1 balance 35,400 Completed and transferred to Blending ? Materials 138,600 Direct labor 70,200 Overhead 486,000 March 31 balance ? The March 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: March 1 balance Materials Direct labor Overhead March 31 balance Work in Process-Refining Department 33,800 Completed and transferred to Blending 143,600 78,200 486,000 ? The March 1 work...
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 March 1 balance 31,400 Completed and transferred to Blending 2 Materials Direct labor Overhead March 31 balance 155,600 68,200 480,000 2 The March 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 March 1 balance Completed and transferred to Blending Materials 155,600 Direct labor 30,200 Overhead 472.000 March 31 balance The March 1 work in...