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 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 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 3 during the period for direct materials is

A) Work in Process-Department 3 Materials
100,000
100,000
B) Work in Process-Department 3 Materials
125,000
125,000
C) Work in Process-Department 3 Materials
50,000
50,000
D) Work in Process-Department 3 Materials
70,000
70,000