POroblem

Hardy Company manufactures a single product by a continuous process, involving two production departments. The records indicate that $140,000 of direct materials were issued to and $200,000 of direct labor was incurred by Department 1 in the manufacture of the product. The factory overhead rate is $25 per machine hour; machine hours were 5,000 in Department 1. Work in process in the department at the beginning of the period totaled $35,000; and work in process at the end of the period was $25,000.

Prepare entries to record

- The flow of costs into Department 1 for

(1) direct materials
(2) direct labor
(3) overhead

- No. Account Titles and Explanation Debit Credit

- The transfer of production costs to Department 2. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)