Mocha Company Manufactures a Single Product by a Continuous Process

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 $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

A) Work in Process-Department 3 Work in Process-Department 2 375,000
375,000
B) Work in Process-Department 3 Work in Process-Department 2 570,000
570,000
C) Work in Process-Department 3 Work in Process-Department 2 490,000
490,000
D) Work in Process-Department 3 Work in Process-Department 2 555,000
555,000