The journal entry to record the flow of costs into Department 2 during the period for direct materials is
A) Work in Process-Department 2 100,000
Materials 100,000
B) Work in Process-Department 2 55,000
Materials 55,000
C) Work in Process-Department 2 150,000
Materials 150,000
D) Materials 55,000
Work in Process-Department 2 55,000

Question

Quizplus · Accepted Answer

The entry should reflect the flow of direct material costs into Department 2. Therefore, we would need to record the cost of direct materials used in production in Department 2. Since the question does not provide any further information, we can assume that direct materials are the only cost incurred in Department 2 during the period. Hence, this means that the cost of goods transferred in from Department 1 should be excluded. Therefore, Choice B is the correct entry as it only records the direct materials costs incurred in Department 2 during the period.

The Journal Entry to Record the Flow of Costs into Department