The March $1$ work in process inventory in the Refining Department includes materials, $\backslash$$$7,500$; direct labor, $\backslash$$$3,300$; and overhead, $\backslash$$$21,200.$

Costs incurred during March in the Blending Department were materials used, $\backslash (\backslash$$ $45,000\backslash )$; direct labor, $\backslash (\backslash$$ $17,000\backslash )$; and overhead cost applied to production, $\backslash (\backslash$$ $98,000\backslash ).$

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, $\backslash$$$686,000.($Credit Accounts Payable.$)$

d$.$ Manufacturing overhead was applied to production using a predetermined overhead rate.

e$.$ Units completed in the Refining Department were transferred to the Blending Department, $\backslash$$$682,000.$

f$.$ Units completed in the Blending Department were transferred to Finished Goods, $\backslash$$$730,000.$

g$.$ Completed units were sold on account, $\backslash (\backslash$$ $1,370,000\backslash ).$ The Cost of Goods Sold was $\backslash (\backslash$$ $630,000\backslash ).$

$2.$ 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

$ $212,600$

Work in process$-$Blending Department $ $53,000$

Finished goods

$ $22,000$

$```$ Return to question

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline No & & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$General Journal$\}$ & Debit & Credit $\backslash \backslash$

$\backslash$hline $1$ & a$.$ & Work in process$-$Refining Department & $\backslash (\backslash$bigcirc $\backslash )$ & $145,600$ & $\backslash \backslash$

$\backslash$hline & & Raw materials & $\backslash (\backslash$times $\backslash )$ & & $145,600*\backslash \backslash$

$\backslash$hline $2$ & b$.$ & Work in process$-$Refining Department & $\backslash (\backslash$checkmark $\backslash )$ & $76,200$ & $\backslash \backslash$

$\backslash$hline & & Salaries and wages payable & $\backslash (\backslash$times $\backslash )$ & & $76,200*\backslash \backslash$

$\backslash$hline $3$ & c$.$ & Manufacturing overhead & $\backslash (\backslash$checkmark $\backslash )$ & $686,000$ & $\backslash \backslash$

$\backslash$hline & & Accounts payable & $\backslash (\backslash$checkmark $\backslash )$ & & $686,000\backslash \backslash$

$\backslash$hline $4$ & d$.$ & Work in process$-$Refining Department & $\backslash (\backslash$checkmark $\backslash )$ & $478,000$ & $\backslash \backslash$

$\backslash$hline & & Manufacturing overhead & $\backslash (\backslash$times $\backslash )$ & & $478,000*\backslash \backslash$

$\backslash$hline $5$ & e$.$ & Work in process$-$Blending Department & $\backslash (\backslash$checkmark $\backslash )$ & $682,000$ & $\backslash \backslash$

$\backslash$hline & & Work in process$-$Refining Department & $\backslash (\backslash$bigcirc $\backslash )$ & & $682,000\backslash \backslash$

$\backslash$hline $6$ & f$.$ & Finished goods & $\backslash (\backslash$checkmark $\backslash )$ & $730,000$ & $\backslash \backslash$

$\backslash$hline & & Work in process$-$Blending Department & $-$ & & $730,000\backslash \backslash$

$\backslash$hline $7$ & $\backslash (\backslash$mathrm$\{$g$\}(1)\backslash ).$ & Accounts receivable & $\backslash (\backslash$checkmark $\backslash )$ & $1,370,000$ & $\backslash \backslash$

$\backslash$hline & & Sales & $\backslash (\backslash$checkmark $\backslash )$ & & $1,370,000\backslash \backslash$

$\backslash$hline $8$ & $\backslash (\backslash$mathrm$\{$g$\}(2)\backslash ).$ & Cost of goods sold & $\backslash (\backslash$bigcirc $\backslash )$ & $630,000$ & $\backslash \backslash$

$\backslash$hline & & Finished goods & $\backslash (\backslash$checkmark $\backslash )$ & & $630,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

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