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 $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 1 during the period for applied overhead is

A) Factory Overhead-Department 1               150,000     Work in Process-Department 1                                           150,000
B) Work in Process-Department 1                 125,000     Factory Overhead-Department 1                                        125,000
C) Work in Process-Department 1                   80,000     Factory Overhead-Department 1                                          80,000
D) Work in Process-Department 1                 150,000     Factory Overhead-Department 1                                        150,000