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 entry to journalize the flow of costs from Department 1 into Department 2 is

Journalizing the entry for the indirect labor costs incurred for general factory use would include a debit to

Once equivalent units are computed for materials, this number will also be used for direct labor and factory overhead.

Costs incurred in a previous process that are carried forward as part of the product’s cost when it moves to the next department are called

Direct labor cost is an example of a period cost.

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had production costs of $375,000. The journal entry for the transfer of costs from finished goods to cost of goods sold is

When applied factory overhead is more than actual factory overhead, the result is called

Measure of the work done during a production period, expressed in terms of fully complete units of output, is called

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use (indirect labor). In addition, factory overhead charged to production was $32,000. The journal entry for the direct labor costs is

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.