PROBLEM $4-17$ Cost Flows

LO$4-1$

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

Materials

Direct labor

Overhead

March $31$ balance

Work in Process$-$Refining Department

$38,000$

Completed and transferred to Blending

$495,000$

$72,000$

$181,000$

$?$

The March $1$ work in process inventory in the Refining Department consists of the following elements: materials, $$25,000$; direct labor, $$4,000$; and overhead, $$9,000.$

Costs incurred during March in the Blending Department were: materials used, $$115,000$; direct labor, $$18,000$; and overhead cost applied to production, $$42,000$: