75 ints 1 Problem 5-17 (Algo) Cost Flows [LO 5-1] Lubricants, Incorporated, produces a special kind of grease that is widely used by race car drivers. The grease is produced in t 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 Debit Credit March 1 balance 32,200 Completed and transferred to Blending Print Materials Direct labor Overhead 137,600 77,200 472,000 March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7100, direct la $4,300, and overhead, $20,800. Costs incurred during March in the Blending Department were: materials used, $45,000, direct labor, $16,400, and overhead co applied to production, $99,000. Required: 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. H 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, $626,000. (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. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $750,00 g. Completed units were sold on account, $1,390,000. The Cost of Goods Sold was $660,000 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) Raw materials Work in process-Blending Department Finished goods $213,600 $ 46,000 $ 24,000