Lombardi Company manufactures a single product by a continuous process, involving threee production departments. The records indicate that direct materials, direct labor, and 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 record 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:
a. Work in Process–Dept. 3 (D) 585,00
Work in Process–Dept. 2 (C) 585,000
b. Work in Process–Dept. 3 (D) 570,000
Work in Process–Dept. 2 (C) 570,000
c. Work in Process–Dept. 3 (D) 555,000
Work in Process–Dept. 2 (C) 555,000
d. Work in Process–Dept. 3 (D) 165,000
Work in Process–Dept. 2 (C) 165,000
What numbers do I use to figure this out?
Work in Process, Beginning $10,000
Work in Process, Ending $15,000
Direct Labor Costs Incurred $ 4,000
Cost of Goods Manufactured $ 8,000
Factory Overhead $ 8,000
What is the amount of direct materials used?
a. $1,000
b. $4,000
c. $7,000
d. $3,000
What numbers do I use to figure this out?
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