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Question
Use this information about Mocha Company to answer the questions that follow.
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 for the flow of costs into Department 1 for direct labor is
a. Work in Process—Department 1 65,000
Wages Payable 65,000
b. Wages Payable 125,000
Work in Process—Department 1 125,000
c. Work in Process—Department 1 125,000
Wages Payable 125,000
d. Wages Payable 65,000
Work in Process—Department 1 65,000
Answer
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