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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 2 during the period for direct materials is:________.
A. Work in Process--Department 2 55,000
Materials 55,000
B. Work in Process--Department 2 150,000
Materials 150,000
C. Materials 55,000
Work in Process--Department 2 55,000

D. Work in Process--Department 2 100,000
Materials 100,000

Sagot :

Answer:

A. Work in Process--Department 2 55,000

Explanation:

The journal entry is shown below:

Work in Process - Department 2 Dr $55,000

         To Materials $55,000

(Being the recording of the flow of cost for the direct material is done)

Here the work in process would be debited as it increased the asset and credited the material as it decreased the asset

Therefore the first option is correct

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