1 answer

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records...

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 into Department 2 during the period for direct materials is

a. Work in Process—Department 2100,000 Materials100,000 b. Materials55,000 Work in Process—Department 255,000 c. Materials100,000 Work in Process—Department 2100,000 d. Work in Process—Department 255,000 Materials55,000


Answers

Answer: d. Work in Process—Department 2: 55,000 Materials 55,000

The Journal entry would be:

Debit: Work in process-Department 2:    $55,000

Credit: Materials                                                             $55,000

.

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