Business, 30.03.2020 20:46 eminim01

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

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