Question 3 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 (Credit account titles are automatically indented when the amount is entered. Do not indent manu No. Account Titles and Explanation Debit Credit (1) Work in Process-Dept. 1 140000 Raw Materials Inventory 140000 (2) Work in Process-Dept. 1 200000 Factory Labor 200000 (3) Work in Process-Dept. 1 125000 Manufacturing Overhead 125000 The transfer of production costs to Department 2. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit