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 applied overhead is

A) Factory Overhead-Department 2                 80,000     Work in Process-Department 2                                          80,000
B) Work in Process-Department 2                  230,000     Factory Overhead-Department 2                                      230,000
C) Work in Process-Department 2                    80,000     Factory Overhead-Department 2                                        80,000
D) Work in Process-Department 2                  150,000     Factory Overhead-Department 2                                      150,000

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