O ezto.mheducation.com/hm.tpx https://www.office..Agry-Tech D www-wds.worldba...
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O ezto.mheducation.com/hm.tpx https://www.office..Agry-Tech D www-wds.worldba...Top 10 Best & Most a Science Of Persuas 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: ing Completed and transferred March 1 balance Materials Direct labor Overhead 33,400 to Blending 149,600 76,200 482,000 March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements materials, $8,000; direct labor, $4,500; and overhead, $20,900 Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $17,800; and overhead cost applied to production, $100,000. Required: 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Raw materials were issued for use in production. b. Direct labor costs were incurred c. Manufacturing overhead costs for the entire factory were incurred, $646,000. (Credit Accounts Payable.) d. Manufacturing overhead cost 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, $682,000. f. Units that were complete with respect to processing in the Blending Department were transferred to g. Completed units were sold on account, $1,350,000. The Cost of Goods Sold was $680,000. Finished Goods, $730,000Explanation / Answer
S.NO. ACCOUNTS TITLES AND EXPLANATIONS DEBIT IN $ CREDIT IN $ a. Work in process-Refining Account Dr. 149,600 Raw material inventory 149,600 (for raw material used) b. Factory wages Dr. 76,200 Cash Account 76200 (for wages paid) Work in process-Refining Dr. 76200 Factory wages 76,200 (for wages incurred in production) c Manufacturing Overheads Dr. 646,000 Accounts payable 646,000 (for overheads incurred) d Work in process-Refining Account Dr. 482,000 manufacturing Overheads 482000 (for overheads charged to WIP) e. Work in process-Blending 682,000 Work in process-Rfining 682,000 (for goods completed in Refining transferred) f Finished Goods Dr. 730,000 Work in process-Blending 730,000 (for goods completed) g Accounts receivable Dr. 1,350,000 Sales revenue 1,350,000 (for goods sold on account) Cost of Goods sold account Dr. 680,000 Finished Goods Inventory Account 680,000 (for cost of goods sold transferred from finished goods)
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