7. 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 $50,000, $60,000, and

$70,000, respectively. Department 2 has transferred-in costs of $390,000 for the current period. In

addition, work in process at the beginning of the period for Department 2 totaled $75,000, and work in

process at the end of the period totaled $90,000. The journal entry to record the flow of costs into

Department 3 during the period is

a.

Work in ProcessDepartment 3 375,000

Work in ProcessDepartment 2 375,000

b.

Work in ProcessDepartment 3 570,000

Work in ProcessDepartment 2 570,000

c.

Work in ProcessDepartment 3 490,000

Work in ProcessDepartment 2 490,000

d.

Work in ProcessDepartment 3 555,000

Work in ProcessDepartment 2 555,000