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 2 for applied overhead is OF Work in Process Department 2 Factory Overhead Department 2 ON Work in Process Department 2 Factory Overhead Department 2 OF Work in Process Department 2 1 Factory Overhead-Department 2 OF Factory Overhead-Department 2 Work in Process Department 2 230,000 150,000 80,000 80,000 230,000 150,000 80,000 80,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 3E: Radford Inc. manufactures a sugar product by a continuous process, involving three production...
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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 2 for applied overhead is
OF
Work in Process Department 2
Factory Overhead Department 2
OF
Work in Process Department 2
Factory Overhead Department 2
Work in Process Department 2 1
Factory Overhead-Department 2
OF
Factory Overhead--Department 2
Work in Process Department 2
150,000
80,000
80,000
230,000
150,000
80,000
80,000
Transcribed Image Text: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 2 for applied overhead is OF Work in Process Department 2 Factory Overhead Department 2 OF Work in Process Department 2 Factory Overhead Department 2 Work in Process Department 2 1 Factory Overhead-Department 2 OF Factory Overhead--Department 2 Work in Process Department 2 150,000 80,000 80,000 230,000 150,000 80,000 80,000
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