Ask Question
13 November, 00:12

Calculator 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. The records further indicate that direct 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 the 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:

A. Work in Process--Department 1 100,000

Materials 100,000

B. Work in Process--Department 1 55,000

Materials 55,000

C. Materials 100,000

Work in Process--Department 1 100,000

D. Materials 55,000

Work in Process--Department 1 55,000

+5
Answers (1)
  1. 13 November, 03:10
    0
    The journal entry to record the flow of costs into Department 1 during the period for direct materials is: B. Work in Process--Department 1 55,000

    Materials 55,000

    Explanation:

    Costs flowing in Department 1 in respect to direct Material is recorded as:

    Work In Process - Department 1 $55,000 (debit)

    Raw Materials $55,000 (credit)

    This journal entry de-recognizes the Materials Account as a result of usage of materials and recognizes the Work - In Process Cost to Department 1 as a result of accumulation of material cost in the manufacturing process
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Calculator Mocha Company manufactures a single product by a continuous process, involving three production departments. The records ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers