Answer:
Given that,
Direct materials = $100,000
Direct labor = $125,000
Applied factory overhead for Department 1 = $150,000
Direct materials = $50,000
Direct labor = $60,000
Applied factory overhead for Department 2 = $70,000
Therefore, the journal entry is as follows:
Work in Process - Department 3 A/c Dr. $555,000
To Work in Process - Department 2 $555,000
(To record the flow of costs into Department 3 during the period)
Workings:
Work in Process - Department 3:
= $100,000 + $125,000 + $150,000 + $50,000 + $60,000 + $70,000
= $555,000
