Reference no: EM132984212

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 33,300

Completed and transferred to Blending?

Materials150,600

Direct labor 79,200

Overhead 475,000 March 31 balance?

• The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,600; direct labor, $4,500; and overhead, $20,200.
• Costs incurred during March in the Blending Department were: materials used, $45,000; direct labor, $17,300; and overhead cost applied to production, $100,000.

Required:

Problem 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March.