Mocha Company Manufactures a Single Product by a Continuous Process

question 63

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 $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:

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Definitions:

U.S. Census Bureau

A major component of the U.S. Federal Statistical System tasked with generating statistics on the American population and economic conditions.

Nuclear Family

A family unit consisting of two parents (traditionally a man and a woman) and their biological or adopted children, considered the traditional family structure in many societies.

Industrial Economy

An economy characterized by the mass production of goods and services in large-scale enterprises using technological advancements and typically reliant on the exploitation of fossil fuels.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, marked by significant technological advancements and changes in economic practices.