Mocha Company Manufactures a Single Product by a Continuous Process

question 52

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 $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 1 during the period for direct labor is:

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Definitions:

Exemption Clause

A provision in a contract that limits or eliminates one party's liability for certain acts or omissions.

Illegal Restraint

Actions or practices that unlawfully restrict an individual's freedom of movement or personal liberty.

Act Of God

An event caused by natural forces beyond human control, such as floods or earthquakes, that is not attributable to human actions.

Fundamental Breach

A serious violation of a contract that permits the aggrieved party to terminate the agreement and seek damages.