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

a. Work in Process—Department 3585,000 Work in Process—Department 2585,000
b. Work in Process—Department 3165,000 Work in Process—Department 2165,000
c. Work in Process—Department 3555,000 Work in Process—Department 2555,000
d. Work in Process—Department 3570,000 Work in Process—Department 2570,000

Answer 1

Answer and Explanation:

The journal entry to record the flow of cost into department 3 is shown below

Work in Process - Department 3 $555,000

To Work in Process - Department 2 $555,000

(Being the flow of cost into department 3 is recorded)

For recording this we debited the work in process in department 3 as there is a flow and credited the work in process in department 2

The amount is came from

= $100,000 + $125,000 + $150,000 + $50,000 + $60,000 + $70,000

= $555,000

This is the answer but the same is not provided in the given options