records indicate that direct materials, direct labor, and Mocha Company manufact
ID: 2399603 • Letter: R
Question
records indicate that direct materials, direct labor, and Mocha Company manufactures a single product by a continuous process Involving three production departments. The applied factory overhead $75,000, and work in process at the end of the perod totaled $60,000. The records indicate that direct materials, direct labor, and applied factory overheed for 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 Oa. Work in 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 585,000 570,000 555,000 585,000 Ob. Work in Oc. Work in Process-Department 3 Od. Work in Process-Department 3 Work in ment 2 555,000 Work in 165,000165,000 Work in
Explanation / Answer
Correct answer Question 1
(A ) $ 585000
Calculations
Department 1 cost
Material
$ 100,000.00
Labor
$ 125,000.00
Overheads
$ 150,000.00
Add: Opening WIP
$ 75,000.00
Less: Closing WIP
$ (60,000.00)
Department 1 cost
$ 390,000.00
Department 2 cost
Material
$ 50,000.00
Labor
$ 60,000.00
Overheads
$ 70,000.00
Add: Opening WIP
$ 75,000.00
Less: Closing WIP
$ (60,000.00)
Department 2 cost
$ 195,000.00
Flow of total cost of dept 1 and 2 into department 3
Department 1 cost
$ 390,000.00
Department 2 cost
$ 195,000.00
Total cost
$ 585,000.00
Correct answer Question 2
(C ) $ 50000
Only department 3 material cost is transferred.
Correct answer Question 1
(A ) $ 585000
Calculations
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