Mocha Company Manufactures a Single Product by a Continuous Process

question 115

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 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 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 for direct materials is

• A) Work in Process-Department 3 Materials
• 100,000
• 100,000
• B) Work in Process-Department 3 Materials
• 125,000
• 125,000
• C) Work in Process-Department 3 Materials
• 50,000
• 50,000
• D) Work in Process-Department 3 Materials
• 70,000
• 70,000

Recognize the influence of technology on organizational structure and design, including operations technology and information technology.

Understand the characteristics and implications of process designs and technology classifications in organizations.

Understand the legal principle of disaffirmance by minors in contracts.

Grasp the impact of mental incapacity on the validity of contracts.

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Definitions:

Fishery Collapse

A rapid decline in a fishery’s population because its fish are being harvested faster than they can reproduce.

Population Growth

The increase in the number of individuals in a population, usually measured as a percentage of the total population.

Harvested

The process of gathering mature crops from the fields.

Property Rights

Legal rights to use, transfer, and dispose of property, including ownership and control over resources.