Mocha Company Manufactures a Single Product by a Continuous Process

question 37

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. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. Department 2 has transferred-in costs of $390,000 for the current period. 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 $90,000. 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 2 375,000
• 375,000
• 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 2 490,000
• 490,000
• D) Work in Process-Department 3 Work in Process-Department 2 555,000
• 555,000

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Definitions:

Structure Of DNA

The double helix configuration consisting of two strands wound around each other, with bases paired in the interior.

James Watson

An American molecular biologist, geneticist, and zoologist, co-discoverer of the structure of DNA alongside Francis Crick.

Francis Crick

A British molecular biologist, biophysicist, and neuroscientist, best known for co-discovering the structure of the DNA molecule in 1953 with James Watson.

Hereditary Material

Genetic information passed from parents to offspring, primarily consisting of DNA or RNA in certain viruses.