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

ID: 2369812 • Letter: M

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 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 1 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 from Department 1 into Department 2 during the period is: a. Work in Process--Department 2               390,000   Work in Process--Department 1                                         390,000
b. Work in Process--Department 2               255,000   Work in Process--Department 1                                         255,000
c. Work in Process--Department 2               375,000   Work in Process--Department 1                                         375,000
d. Work in Process--Department 2               330,000   Work in Process--Department 1                                         330,000
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 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 1 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 from Department 1 into Department 2 during the period is: a. Work in Process--Department 2               390,000   Work in Process--Department 1                                         390,000
b. Work in Process--Department 2               255,000   Work in Process--Department 1                                         255,000
c. Work in Process--Department 2               375,000   Work in Process--Department 1                                         375,000
d. Work in Process--Department 2               330,000   Work in Process--Department 1                                         330,000
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 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 1 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 from Department 1 into Department 2 during the period is: a. Work in Process--Department 2               390,000   Work in Process--Department 1                                         390,000
b. Work in Process--Department 2               255,000   Work in Process--Department 1                                         255,000
c. Work in Process--Department 2               375,000   Work in Process--Department 1                                         375,000
d. Work in Process--Department 2               330,000   Work in Process--Department 1                                         330,000

Explanation / Answer

a. Work in Process--Department 2 390,000 Work in Process--Department 1 390,000