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 The following incomplete Work in Process account is available for the Refining Department for March March 1 balance Work in Process-Refining Department 32,100 Completed and transferred to Blending 151,6ee 65,200 472,000 Materials Direct 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, $3,800; and overhead, $19,900, Costs incurred during March in the Blending Department were materials used, $45,000; direct labor, $16,200; and overhead cost applied to production, $102,000.

Answer 1

No.	Journal Entries				Debit	Credit
a	Work in process inventory-refining				151,600
	work in process inventory - blending				45,000
	raw materials inventory					196,600
b	Work in process inventory-refining				65,200
	work in process inventory - blending				16,200
	Salaries and wages payable					81,400
c	manufacturing overhead				666,000
	accounts payable					666,000
d	Work in process inventory-refining				472,000
	work in process inventory - blending				102,000
	manufacturing overhead					574,000
e	work in process inventory-blending				682,000
	work in process inventory-refining					682,000
f	finished goods inventory				740,000
	work in process inventory-blending					740,000
g	accounts receivable				1,480,000
	sales					1,480,000
	cost of goods sold				630,000
	finished goods inventory					630,000
T-Accounts
Raw Materials Inventory					Manufacturing overhead
Beg bal	212,600				Beg Bal
		196,600	a.		c	666,000	574,000	d
end bal	16,000
					End bal	92,000
work in process inventory-Refining					Accounts receivable
Beg bal	32,100				g.	1,480,000
a	151,600	682,000	e.
b.	65,200
d	472,000
End bal	38,900				End bal	1,480,000
Work in process inventory-Blending					Accounts payable
Beg Bal	51,000						666,000	c.
a	45,000	740,000	f.
b.	16,200
d	102,000
e	682,000
End bal	156,200				end bal		666,000
finished goods inventory					Salaries and wages payable
beg bal	24,000				Beg bal
f	740,000	630,000	g				81,400	b.
end bal	134,000				end bal		81,400
cost of goods sold					Sales
g.	630,000						1,480,000	g.
end bal	630,000				end bal		1,480,000