Solution 1: | |||
Journal Entries - Lubricants Inc. | |||
Event | Particulars | Debit | Credit |
a | Work In Process - Refining department Dr | $142,600.00 | |
Work In Process - Blending department Dr | $45,000.00 | ||
To Raw material inventory | $187,600.00 | ||
(To record material used in production) | |||
b | Work In Process - Refining department Dr | $75,200.00 | |
Work In Process - Blending department Dr | $16,100.00 | ||
To Wages Payable | $91,300.00 | ||
(To record direct labor cost incurred) | |||
c | Manufacturing overhead Dr | $666,000.00 | |
To Accounts Payable | $666,000.00 | ||
(To record manufacturing overhead incurred) | |||
d | Work In Process - Refining department Dr | $475,000.00 | |
Work In Process - Blending department Dr | $103,000.00 | ||
To Manufacturing overhead | $578,000.00 | ||
(To apply manufacturing overhead) | |||
e | Work In Process - Blending department Dr | $672,000.00 | |
To Work In Process - Refining department | $672,000.00 | ||
(Being units completed in refining transferred to Blending) | |||
f | Finished goods inventory Dr | $710,000.00 | |
To Work In Process - Blending department | $710,000.00 | ||
(Being units completed in blending transferred to finished goods) | |||
g1 | Accounts receivables Dr | $1,350,000.00 | |
To Sales Revenue | $1,350,000.00 | ||
(To record sales on account) | |||
g2 | Cost of goods sold Dr | $640,000.00 | |
To Finished goods inventory | $640,000.00 | ||
(To record cost of goods sold) |
Solution 2: | |||
Raw materials inventory | |||
Particulars | Debit | Particulars | Credit |
March 1 balance | $208,600.00 | Material used | $187,600.00 |
March 31, balance | $21,000.00 | ||
Work In Process - Refining | |||
Particulars | Debit | Particulars | Credit |
March 1 balance | $33,700.00 | Completed and transferred to Blending | $672,000.00 |
Material | $142,600.00 | ||
Direct labor | $75,200.00 | ||
Overhead | $475,000.00 | ||
March 31, balance | $54,500.00 | ||
Work In Process - Blending | |||
Particulars | Debit | Particulars | Credit |
March 1 balance | $57,000.00 | Completed and transferred to Finished Goods | $710,000.00 |
Transferred from Refining | $672,000.00 | ||
Material | $45,000.00 | ||
Direct labor | $16,100.00 | ||
Overhead | $103,000.00 | ||
March 31, balance | $183,100.00 | ||
Finished Goods Inventory | |||
Particulars | Debit | Particulars | Credit |
March 1 balance | $15,000.00 | Cost of goods sold | $640,000.00 |
Transferred from Blending | $710,000.00 | ||
March 31, balance | $85,000.00 | ||
Manufacturing overhead | |||
Particulars | Debit | Particulars | Credit |
Overhead incurred | $666,000.00 | Overhead applied | $578,000.00 |
March 31, balance | $88,000.00 | ||
Cost of goods sold | |||
Particulars | Debit | Particulars | Credit |
Finished goods inventory | $640,000.00 | ||
March 31, balance | $640,000.00 | ||
Sales Revenue | |||
Particulars | Debit | Particulars | Credit |
Accounts receivables | $1,350,000.00 | ||
March 31, balance | $1,350,000.00 |
Record direct labor cost incurred for Refining and Blending Department. Record manufacturing expenses incurred for the...
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. 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.) Lubricants, Inc., produces a special kind of grease that is widely used by race...
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 DepartmentMarch 1 balance32,000Completed and transferredto Blending?Materials150,600Direct labor81,200Overhead489,000March 31 balance? The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,400; direct...
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 32.400 139,600 68,200 489,000 March...
March 1 balance Work in Process-defining Department 33,200 Completed and transferred to atending 151,600 76,200 482.000 Materiala Direet labor Overhead March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,400, direct labor, $3,700; and overhead, $21,100. Costs incurred during March in the Blending Department were materials used, $46,000, direct labor, 518,000, and overhead cost applied to production, $105,000 Required: 1. Prepare journal entries to record the costs incurred 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 Materials Direct labor Overhead March 31 balance Work in Process-Refining Department 33,200 Completed and transferred to Blending 145,600 66,200 473,000 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: 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 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 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: March 1 balance Work in Process-Refining Department 31,600 Completed and transferred to Blending 152,600 70,200 485,000 Materials Direct labor Overhead March 31 balance The March 1 work in...