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 $50,000, $60,000, and $70,000, respectively. Department 2 has transferred-in costs of $390,000 for the current period. 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 $90,000. The journal entry to record the flow of costs into Department 3 during the period is a. Work in Process—Department 3               555,000     Work in Process—Department 2                                         555,000 b. Work in Process—Department 3               490,000     Work in Process—Department 2                                         490,000 c. Work in Process—Department 3               570,000     Work in Process—Department 2                                         570,000 d. Work in Process—Department 3               375,000     Work in Process—Department 2

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 $50,000, $60,000, and $70,000, respectively. Department 2 has transferred-in costs of $390,000 for the current period. 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 $90,000. The journal entry to record the flow of costs into Department 3 during the period is

a.

Work in Process—Department 3               555,000

    Work in Process—Department 2                                         555,000

b.

Work in Process—Department 3               490,000

    Work in Process—Department 2                                         490,000

c.

Work in Process—Department 3               570,000

    Work in Process—Department 2                                         570,000

d.

Work in Process—Department 3               375,000

    Work in Process—Department 2                                         375,000

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