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g March 1 balance 33,600 Completed and transferred to Blending ? Materials 139,600 Direct labor 81,200 Overhead 475,000 March 31 balance ? The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,800; direct labor, $3,300; and overhead, $21,500. Costs incurred during March in the Blending Department were: materials used, $45,000; direct labor, $17,600; and overhead cost applied to production, $98,000. 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.

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Answer:

The items were missing, so I looked for a similar question:

  1. Raw materials used in production.
  2. Direct labor costs incurred.
  3. Manufacturing overhead costs incurred for the entire factory, $636,000. (Credit Accounts Payable.)
  4. Manufacturing overhead was applied to production using a predetermined overhead rate.
  5. Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $702,000.
  6. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $890,000.
  7. Completed units were sold on account, $1,310,000. The Cost of Goods Sold was $750,000.

1)

Dr Work in process - refinement 139,600

Dr Work in process - blending 45,000

Cr Materials inventory 184,600

2)

Dr Work in process - refinement 81,200

Dr Work in process - blending 17,600

Cr Wages payable 98,800

3)

Dr Manufacturing overhead 636,000

Cr Accounts payable 636,000

4)

Dr Work in process - refinement 475,000

Dr Work in process - blending 98,000

Cr Manufacturing overhead 573,000

5)

Dr Work in process - blending 702,000

Cr Work in process - refinement 702,000

6)

Dr Finished goods inventory 890,000

Cr Work in process - blending 890,000

7)

Dr Accounts receivable 1,310,000

Cr sales revenue 1,310,000

Dr Cost of goods sold 750,000

Cr Finished goods inventory 750,000

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