Question

Check my w 3 Problem 4-17 Cost Flows [LO 4-1) 70 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. points The following incomplete Work in Process account is available for the Refining Department for March: Work in Process-Refining Department eBook 32,100 Completed and transferred to Blending March 1 balance 74.200 nirect labor Print Overhead 485,000 March 31 balance the Refining Department consists of the following elements: materials, $7,400; direct labor The March 1 work in process inventory $4,200; and overhead, $20,500 References Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $17,000; and overhead cost applied to production, $111,000. Required: 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key your entries to the items (a) through (g) below. a. Raw materials used in production. b. Direct labor costs incurred. c. Manufacturing overhead costs incurred for the entire factory, $626,000. (Credit Accounts Payable.) d. Manufacturing overhead was applied to production using a predetermined overhead rate e. Units that were complete with respect to processing $632,000 the Refining Department were transferred to the Blending Department Check my work 3 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, $632,000 Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $780,000. g. Completed units were sold on account, $1,350,000. The Cost of Goods Sold was $610,000. 70 points 2. Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Refining Department's Work in Process is given in the T-account shown above.) eBook Raw materials $ 212,600 41,000 $19,000 Work in process-Blending Department Finished goods Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key your entries to the items (a) th rough (g) below. (If no entry is required for a transaction/event, select "No journal entry required" the first account field.) View transaction list 3 Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key your entries to the items (a) through (g) below. (If no entry is required for a transaction//event, select "No journal entry required" in the first account field.) View transaction list 70 points Journal entry worksheet 1 2 3 4 5 6 7 8 eBook Record issuance of raw materials to Refining and Blending Department. Print Note: Enter debits before credits. References Credit Transactions General Journal Debit Work in process-Refining Department a Raw materials Record entry Clear entry View general journal

Answer 1

Lubricants Inc. 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key your entries to the items (a) through (g) below. a. Raw materials used in production. Work in Process - Refining Dept Work in Process - Blending Dept Raw Materials 147600 46000 193600 b.Direct labor costs incurred. Work in Process Refining Dept Work in Process Blending Dept Salaries and Wages Payable 74200 17000 91200 c. Manufacturing overhead costs incurred for the entire factory, Manufacturing Overhead Accounts Payable 626000 (Credit Accounts Payable 626000 626000 d. Manufacturing overhead was applied to production using a predetermined overhead rate Work in Process - Refining Dept Work in Process - Blending Dept Manufacturing Overhead 485000 111000 596000 e. Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, Work in Process -Blending Dept 632000 Work in Process - Refining Dept 632000 f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, Finish goods 780000 Work in Process-Blending Dept 780000 1350000 610000 g.Completed units were sold on account The Cost of Goods Sold Accounts Recivable 1350000 Sales 1350000 610000 Cost of Goods Sold 610000 Finished Goods

2. Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Refining Department's Work in Process is given in the T-account shown abo Raw materials 212600 Work in process-Blending Dept Finished goods 41000 19000 Accounts Receivable Raw Materials 1350000 (g) 212600 19000 193600 (a) Bal. Bal Work in Process Refining Dept 632000 ('e) Work in Process Blending Dept 41000 32100 Bal. Bal. 780000 (f) 147600 74200 (a) (b) (d) (a) 46000 (b) 17000 111000 632000 67000 485000 (d) ('e) Bal. 106900 Bal. Manufacturing Overheade 626000 30000 Finished Goods 19000 610000 (g) 596000 (d) Bal. ('c) (f) Bal. 780000 189000 Bal. Salaries and Wages Payable Accounts Payable 626000 ('c) 91200 (b) Sales Cost of Goods Sold 610000 1350000 (g) (g)