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Studentka2010 [4]
3 years ago
11

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicat

e that direct materials, direct labor, and applied factory overhead for Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 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 for direct materials is:_________.
A. Work in Process--Department 3 100,000
Materials 100,000
B. Work in Process--Department 3 125,000
Materials 125,000
C. Work in Process--Department 3 50,000
Materials 50,000
D. Work in Process--Department 3 70,000
Materials 70,000
Business
1 answer:
ELEN [110]3 years ago
3 0

Answer:

C.

Work In Process $50,000 (debit)

Raw Materials $50,000 (credit)

Explanation:

<u>Department Costs</u>

Dep 2 : $100,000 + $125,000 + $150,000 = $375,000

Dep 3 : $375,000 + $50,000 + $60,000 + $70,000 + $75,000 - $60,000 =  $570,000

<u>Direct Materials Flow Entry :</u>

<em>Work In Process $50,000 (debit)</em>

<em>Raw Materials $50,000 (credit)</em>

Flows in department 3 must include, $375,000 costs from department 2, direct materials : $50,000 , direct labor:  $60,000, and applied factory overhead; $70,000 for Department 3.

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