Reference no: EM131260006
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
a.Work in Process—Department 2 390,000
Work in Process—Department 1 390,000
b.Work in Process—Department 2 375,000
Work in Process—Department 1 375,000
c.Work in Process—Department 2 215,000
Work in Process—Department 1 215,000
d.Work in Process—Department 2 330,000
Work in Process—Department 1 330,000
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