Hardy Company Manufactures a Single Product by a Continuous Process

question 86

Essay

Hardy Company manufactures a single product by a continuous process, involving two production departments. The records indicate that $120,000 of direct materials were issued to and $200,000 of direct labor was incurred by Department 1 in the manufacture of the product. The factory overhead rate is $20 per machine hour; machine hours were 5,000 in Department 1. Work in process in the department at the beginning of the period totaled $35,000; and work in process at the end of the period was $25,000.
Instructions
Prepare entries to record
(a) The flow of costs into Department 1 for
(1) direct materials
(2) direct labor
(3) overhead
(b) The transfer of production costs to Department 2.

---

Definitions:

Johari Window

A model used to understand and improve self-awareness, interpersonal relationships, and group dynamics through disclosure and feedback.

Diversity Awareness Programs

Initiatives designed to educate and inform people about the benefits of diversity and to foster an environment of inclusion and respect for differences.

Primacy And Recency Effects

Psychological phenomena where individuals are more likely to remember the first (primacy) and last (recency) items in a series better than those in the middle.

Attribution Errors

Cognitive biases or mistakes in judgment that occur when individuals wrongly attribute the cause of a behavior or event to personal traits, overlooking the role of situational factors.