Question

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. 10 The following incomplete Work in Process account is available for the Refining Department for March: points (8 01:28:07 March 1 balance Work in Process-Refining Department 31,000 Completed and transferred to Blending 139,600 71,200 484,000 Skipped Materials Direct labor Overhead March 31 balance eBook The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,400; direct labor, $3,100; and overhead, $20,500. Print References Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $16,100; and overhead cost applied to production, $118,000. 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, $706,000. (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, $652,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $760,000. g. Completed units were sold on account, $1,420,000. The Cost of Goods Sold was $660,000.
I shouldn't even have to post this if last "expert" hadn't stopped halfway through question, waste of a post.

Answer 1

credit (1) Transaction - General Journal Debit I a. Work in Process - Refining Department & 139,600 work in Process-Blending Department & 46,000 Raw materials (To record issuance of raw materials) $185,600 b. Work in Process - Refining Department $11,200 work in Process - Blending Department & 16, 100 Salaries and wages Payable Ito record direct labor cost incurred). $ 87,300 & 706,000 $ 706,000 Manufacturing overhead Accounts Payable (To record manufacturing expenses) & 484,000 $ 484,000 de work in Process - Refining Department Manufacturing overhead (to record overhead lost applied) di (2) $ 118,000 work in Process - Blending departmen & 118,000 Manufacturing overhead (To record overhead cost applied)

e 652,000 Work in Process-Blending Department Work in Proves - Refining Department (To record transfer of semifinished units) $ 652,ODD finished Goods $760,000 work in Process- Blending Department (Tomecord transfer of completed units) $760,000 941) $ 1,420,000 Accounts Receivable sales (to record sales on account) $ 1,420,000 $ 660,000 g (2) Cost of Goods sold finished Goods I(To record cost of goods sold) $ 660,000 Accounts Receivable Raw Materiats Begi Bal 4208,600/12) $185,600 18 $1,420,00 End. Bal $20,000

Work in Process Refining Department Beg. Bali $31,000 (a) & 139, 600 (e) & 652,000 (b) $ 71,200 d) 484,000 work in Process Blending Department Beg. Bal $43,000 a) $ 46,0000 $760,00 b) $ 16,100 (d) $ 118,000 $ 652,000 le) End. Bal. $ 73,800 Endi Bal. & 115,100 finished Goods Beg. Bal. & 17,000 $760,000 g) $660,000 Manufactwung overhead $706,000 & 602,000 (0) End. Bal. | $104,000 Endi Bal/ $ 117,000 Accounts Payable 6/4706,000 Salaries and wages Payable 0b 87,300 Sales Cost of Goods sold $ 1,420,000 (9) $660,000

Calculation: Manufacturing overhead = manufacturing overhead Refining Department t Manufacturing overhead blending Department = $ 484,000 + $ 18,000 = $ 602,000