Mocha Company manufactures a single product by a continuous process, involving t

Question

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period for direct materials is: a. Work in Process--Department 3                 70,000   Materials                                                                             70,000
b. Work in Process--Department 3               100,000   Materials                                                                           100,000
c. Work in Process--Department 3                 50,000   Materials                                                                             50,000
d. Work in Process--Department 3               125,000   Materials                                                                           125,000 Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period for direct materials is: a. Work in Process--Department 3                 70,000   Materials                                                                             70,000
b. Work in Process--Department 3               100,000   Materials                                                                           100,000
c. Work in Process--Department 3                 50,000   Materials                                                                             50,000
d. Work in Process--Department 3               125,000   Materials                                                                           125,000

Explanation / Answer

Work in Process--Department 370,000 Materials70,000 b. Work in Process--Department 3100,000 Materials100,000 c. Work in Process--Department 350,000 Materials50,000 d. Work in Process--Department 3125,000 Materials125,000

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