Reference no: EM132687265
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.
Problem 1: The journal entry to record the flow of costs into Department 2 for applied overhead is
Option a. Factory Overhead-Department 280,000
Work in Process-Department 280,000
Option b. Work in Process-Department 2150,000
Factory Overhead-Department 2150,000
Option c. Work in Process-Department 280,000
Factory Overhead-Department 280,000
Option d. Work in Process-Department 2230,000
Factory Overhead-Department 2230,000
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