Pure Botanicals, Inc. keeps one of its production facilities busy making a perfume called Lily of the Valley. The perfume goes through two processing departments: Blending and Bottling. The following incomplete Work in Process account is provided for the Blending Department for March: Work in ProcessBlending March 1 balance 36,890 Completed and transferred to Bottling (760,000 ounces) ? Materials 154,400 Direct labor 74,800 Overhead 523,600 March 31 balance ? The $36,890 beginning inventory in the Blending Department consisted of the following elements: materials, $7,720; direct labor, $2,990; and overhead applied, $26,180. Costs incurred during March in the Bottling Department were: materials used, $42,000; direct labor, $19,000; and overhead cost applied to production, $114,000. Required: 1. Prepare journal entries to record the costs incurred in both the Blending Department and Bottling Department during March. Key your entries to items (a) through (g) below: 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, $788,000. (All the overheads are on account and use a single Manufacturing Overhead control account for the entire factory.) d. Manufacturing overhead was applied to production using a predetermined overhead rate. e. Units that were complete with respect to processing in the Blending Department were transferred to the Bottling Department, $650,000. f. Units that were complete with respect to processing in the Bottling Department were transferred to Finished Goods, $780,000. g. Completed units were sold on account for $1,396,000. The cost of goods sold was $658,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 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 Blending Departments Work in Process account is given above.) Raw materials $ 212,800 Work in process-Bottling department $ 45,500 Finished goods $ 12,000 After posting the entries to the T-accounts, find the ending balances in the inventory accounts and the manufacturing overhead account.

Accounts Receivable Raw Materials Beg. bal. Beg. bal. End. bal. End. bal. Work in Process - Blending Department Work in Process - Bottling Department Beg. bal. Beg. bal. End. bal. End. bal. Finished Goods Manufacturing Overhead Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Salaries and Wages Payable Beg. bal. Beg. bal. End. bal. End. bal. Sales Cost of Goods Sold Beg. bal. Beg. bal. End. bal. End. bal.