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. 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______________

Answer 1

Answer:

Explanation:

department 1 transferred cost to department 2:

=$75000+$100000+$125000+$150000-$60000

=$390000

department 2 transferred cost to department 3 is:

=$75000+$50000+$60000+$70000+$390000-$60000

=$585000

journal entry to record the flow of costs into department 3 :

Dr work in process depatment 3 $585,000

    Cr work in process department 2 $585,000