Question

1. 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. Work in process at the beginning of the period for Department 1 was $75,000, and work in process at the end of the period totaled $60,000. The records 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 2 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 is

   a.

   Work in Process—Department 3165,000

   Work in Process—Department 2165,000

   b.

   Work in Process—Department 3570,000

   Work in Process—Department 2570,000

   c.

   Work in Process—Department 3555,000

   Work in Process—Department 2555,000

   d.

   Work in Process—Department 3585,000

   Work in Process—Department 2585,000

Answer 1