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Question;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) 585,000b. Work in Process--Dept. 3 (D) 570,000 Work in Process--Dept. 2 (C) 570,000c. Work in Process--Dept. 3 (D) 555,000 Work in Process--Dept. 2 (C) 555,000d. Work in Process--Dept. 3 (D) 165,000 Work in Process--Dept. 2 (C) 165,000What numbers do I use to figure this out?Work in Process, Beginning $10,000Work in Process, Ending $15,000Direct Labor Costs Incurred $ 4,000Cost of Goods Manufactured $ 8,000Factory Overhead $ 8,000What is the amount of direct materials used?a. $1,000b. $4,000c. $7,000d. $3,000What numbers do I use to figure this out?

 

Paper#44887 | Written in 18-Jul-2015

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