Mocha Company Manufactures a Single Product by a Continuous Process

question 14

Multiple Choice

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 3 Work in Process-Department 2 585,000
• 585,000
• B) Work in Process-Department 3 Work in Process-Department 2 570,000
• 570,000
• C) Work in Process-Department 3 Work in Process-Department 2 555,000
• 555,000
• D) Work in Process-Department 3 Work in Process-Department 2 165,000
• 165,000

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Definitions:

Computer Tech

Short for computer technology, it encompasses the hardware and software used to develop, test, and maintain computer systems and applications.

Scanner

A device that converts physical documents into digital format, or in retail, a tool used to read barcodes and pricing information.

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The act of seeking additional details or clarification about a topic, product, or situation to make informed decisions or deepen understanding.

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Concerns or reasons given by a potential customer that could hinder them from completing a purchase.