Question

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 both the Refining Department and Blending Department during March Key your entries to the items (a) through (a) below a. Raw materials used in production b. Direct labor costs incurred. c. Manufacturing overhead costs incurred for the entire factory, $656,000. (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, $632,000. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $720,000. g. Completed units were sold on account, $1.410,000. The Cost of Goods Sold was $630,000 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.) Work in process alending Department Tinished goods $ 211,600 $ 52,000 $ 12,000 Complete this question by entering your answers in the tabs below. Required 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) through (s) below. (ir ne entry is required for a transaction event, select "No journal entry required in the first account field.) View transaction lit Journal entry worksheet < 1 2 3 4 5 6 8 > Recordance of raw materials to Refining and Blending Department Dubit

Answer 1

را Credit Transactions ) Debit General Journal Work in Process-Refining Department $151,600 Work in Process - Blending Department $46,000 Raw Materials $197,600 Ho record issuance of raw materials b. Work in Process - Reforing Department $76,200 Work in Process - Blending Department $ 18,00 0 salaries and wages Payable Ho second direct labor cost incurred) $94,200 c Manufacturing overhead $656,000 Accounts Payable $656,000 Ho record manufacturing expenses) d{l) Work in Process - Refining Department $402,000 Manufacturing overhead 170 second overhead cont applied) $ 482,000 d(2) work in process -Blending Department $105,000 Manufacturing overhead Ho record overhead cost applied) $105,000

e. Work in Procey-Blending Department $ 632,000 Work in Process - Refining Department to record transfer of semifinished units) $ 632,000 f. finished Goods $720,000 Work in Procey-Blending Department Ho record transfer of completed unity $720,000 $1,419000 g(1) Accounts Receivable Sales Ho re cond sales on account) $ 1,410,000 9(2) Cost of Goods sold $630,000 finished Goods Ho second cost of goods sold) $630,000 (2, Accounts Receivable to $1,419000 Raw Materials Beg Bal $ 211,600 (as $ 197,600 End. Bal $14,000

Work in Process Refining Department Beg Bal & 8 33,200 tas $ 151,600 le $ 632,000 $76,200 ta, $482,000 Beg. Bal $52,000 Work in Process Blending Department $46,000 8 $720,000 cas رط وط cas ce $ 10,000 1s los,ooo $ 632,000 End. Bal. $ 111,000 End. Bal•l$133,000 finished Goods Beg Bal. $12,000 $720,000 g $ 639,000 Manufacturing Overhead $656,000 (d) $587,000 End. Bal. $69,000 End Bali & 102,000 Accounts Payable ( $ 656,000 Salaries and wages Payable cb, $ 94,200 Sales 19 $1,410,000 Cost of Goods Gold fo gs $630,000 Calculation (d, Manufacturing Overhead - Manufacturing Overhead Refining Department + Manufacturing Overhead Blending Department $ 482,000 + $ 105,00 o = $587,000