Mocha Company manufactures a single product by a continuous process, involving t
ID: 2486304 • 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 $55,000, $65,000, and $80,000, 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 is
Explanation / Answer
WIP-Dept 1 375000 To direct material 100000 To direct labor 125000 To factory overhead 150000 WIP inventory - dept 2 390000 To WIP inventory - dept 1 390000