Question

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 direct materials is

Answer 1

Answer:

Department 1 Work in Process      100,000 DEBIT

                 Raw materials inventory                        100,000 CREDIT

Explanation:

Department 1 Work in Process      100,000 DEBIT

                 Raw materials inventory                        100,000 CREDIT

We are asked only for direct materials

We will increase the work in process for the cost input, which are the $100,000 added for raw materials.

Also, our raw materials inventory  decrease by the same amount.

The raw materials are an asset for the company, they decrease from credit and increase from debit.

In this case are decreasing, so we have to credit raw materials inventory.

Then we debit WIP to balance the entry.