Lubricants, Inc., produces a special kind of grease that iswidely used by race car drivers. The grease is produced in twoprocessing departments—Refining and Blending. Raw materials areintroduced at various points in the Refining Department. Thefollowing incomplete Work in Process account is available for theRefining Department for March: Work in Process—Refining DepartmentMarch 1 balance 32,400 Completed and transferred to Blending ?Materials 140,600 Direct labor 83,200 Overhead 484,000 March 31balance ? The March 1 work in process inventory in the RefiningDepartment consists of the following elements: materials, $7,800;direct labor, $4,400; and overhead, $20,200. Costs incurred duringMarch in the Blending Department were: materials used, $46,000;direct labor, $17,900; and overhead cost applied to production,$110,000. Required: 1. Prepare journal entries to record the costsincurred in both the Refining Department and Blending Departmentduring March. Key your entries to the items (a) through (g) below.Raw materials used in production. Direct labor costs incurred.Manufacturing overhead costs incurred for the entire factory,$696,000. (Credit Accounts Payable.) Manufacturing overhead wasapplied to production using a predetermined overhead rate. Unitsthat were complete with respect to processing in the RefiningDepartment were transferred to the Blending Department, $632,000.Units that were complete with respect to processing in the BlendingDepartment were transferred to Finished Goods, $730,000. Completedunits were sold on account, $1,350,000. The Cost of Goods Sold was$650,000. 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 Processis given in the T-account shown above.) Raw materials $ 209,600Work in process—Blending Department $ 39,000 Finished goods $14,000