Mocha Company Manufactures a Single Product by a Continuous Process

question 48

Short Answer

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:

---

Definitions:

Meishi

The Japanese term for business cards, which play a significant role in business and social etiquette in Japan.

Zaibatsu

A large Japanese business conglomerate, typically family-owned, existing before World War II and involved in multiple industries.

Marketing Effort

The combination of all activities and strategies applied by a company to promote and sell its products or services to its target audience.

Operational Execution

The ability of an organization to effectively implement plans and strategies to achieve desired outcomes.