Calculator Mocha Company manufactures a single pr involving three production dep
ID: 2539560 • Letter: C
Question
Calculator Mocha Company manufactures a single pr 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 materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at beginning of the period for Department 1 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 1 during the period for direct materials is 55,000 O a. Work in Process-Department 1 Ob. Materials Oc. Materials Materials 55,000 55,000 Work in Process-Department 1 55,000 100,000 Work in Process-Department 1 100,000 d. Work in Process-Department 1 100,000 Materials 100,000Explanation / Answer
Part 1:
Debit
Credit
Work in process Department 1
100000
Materials
100000
Part 2:
Units started
15000
Less: Closing work in process
1600
Started and completed (Units)
13400
Part 3:
Units completed during the year
26800
Less: Opening inventory
4700
22100
Add: Closing
2900
25000
Simply, it will be 25000 units since the materials are introduced at the beginning of the process.
Part 4:
Completed units during the year
61000
Add: Closing units
2500
63500
Less: opening units
4000
Number of material equivalent units
59500
Part 5:
Units started
48000
Add: Remaining work done in opening wip
2000
5000 X 40%
50000
Less: Ending w-i-p
1200
4000 X 30%
Equivalent units
48800
Part 6:
The material cost per equivalent units = 25000 /10000 = 2.50
Part 7:
Debit
Credit
Work in process Department 1
55000
Materials
55000
Debit
Credit
Work in process Department 1
100000
Materials
100000
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