Mocha Company Manufactures a Single Product by a Continuous Process

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 2 for direct labor is

A) Work in Process-Department 2                   65,000     Wages Payable                                                                  65,000
B) Wages Payable                                             65,000     Work in Process-Department 2                                      65,000
C) Work in Process-Department 2                125,000     Wages Payable                                                                125,000
D) Work in Process-Department 2                185,000     Wages Payable                                                                 185,000

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