Hardy Company Manufactures a Single Product by a Continuous Process

Essay

Hardy Company manufactures a single product by a continuous process involving two production departments. The records indicate that $140000 of direct materials were issued to and $200000 of direct labor was incurred by Department 1 in the manufacture of the product. The factory overhead rate is $25 per machine hour; machine hours were 5000 in Department 1. Work in process in the department at the beginning of the period totaled $35000; and work in process at the end of the period was $25000.
Instructions
Prepare entries to record
(a) The flow of costs into Department 1 for
(1) direct materials
(2) direct labor
(3) overhead
(b) The transfer of production costs to Department 2.