Question

1)

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. Work in process at the beginning of the period for Department 1 was $75,000, and work in process at the end of the period totaled $60,000. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. 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 $60,000. The journal entry to record the flow of costs into Department 3 during the period is Oa. Work in Process-Department 3 165,000 Work in Process-Department 2 165,000 b. Work in Process-Department 3 585,000 Work in Process-Department 2 585,000 C. Work in Process-Department 3 555,000 555,000 Od. Work in Process-Department 3 570,000 Work in Process-Department 2 570,000

2)

3)

4)

5)

Answer 1

Q1.
Answer is b. Work in process-Deptt 3   $ 585000
	Work in process-Deptt 2				585000
Explanation:
Department-1
Beginning WIP				75000
Add: Curren cost
Material			100000
Labour			125000
Overheads			150000
Total current cost				375000
Total cost of WIP				450000
Less: Ending WIP				60000
Cost of goods transferred to Deptt 2				390000
Department2:
Beginning WIP				75000
Add: Curren cost
Cost transferred from Deptt 1			390000
Material			50000
Labour			60000
Overheads			70000
Total current cost				570000
Total cost of WIP				645000
Less: Ending WIP				60000
Cost of goods transferred to Deptt 3				585000
Q2.
Answer is c. 139500
Explanation:
Total conversion cost:
Direct labour			88000
Manufacturing Overheads			51500
Total conversion cost:			139500
Q3.
Journal entry:
Work in process inventory			30750
Wages payable				30750
Explanation
		Hours	Rate	labour cost
Job 345		560	20	11200
Job 777		850	23	19550
Total labour cost				30750
Q4.
Job cost
		Job 765	Job 766
Direct Material		8680	14877
Direct Labourr		2604	4698
Overheads applied		4185	11745
		(31*135)	(87*135)
Total cost		15469	31320
Divide: Units		186	348
Cost per unit		83.17	90
req a:
balance on Job cost sheet:
Job 765		15469
Job 766		31320
Req b;
Cost per unit:
Job 765		83.17
Job 766		90
Q5.
Answer is d. $ 11790
Explanation:
Pre-determined Oh rate:
Estimated Factory Oh			98100
Divide: Labour hourrs			10900
Oh rate per DLH			9
Multiply: DLH in Job 117			1310
Manufacuring Oh applied			11790