Accounting Questions

Lombardi Company manufactures a single product by a continuous process, involving threee production departments. The records indicate that direct materials, direct labor, and factory overhead for Department 1 were $100,000, $125,000 and $150,000,respectively. Work in process at the beginning of the period for Department 1 was $75,000, and work in process at the end of the period totaled $60,000.The record indicate that direct materials, direct labor and applied factory overhead for Department 2 were $50,000, $60,000 and $70,000 respectively. 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 $60,000. The journal entry to record the flow of costs into Department 3 during the period is:

a. Work in Process--Dept. 3      (D)  585,00

      Work in Process--Dept. 2                  (C) 585,000

b. Work in Process--Dept. 3      (D)  570,000

      Work in Process--Dept. 2                  (C) 570,000

c. Work in Process--Dept. 3      (D)  555,000

      Work in Process--Dept. 2                  (C) 555,000

d. Work in Process--Dept. 3      (D)  165,000

      Work in Process--Dept. 2                  (C) 165,000

What numbers do I use to figure this out?

Work in Process, Beginning          $10,000

Work in Process, Ending               $15,000

Direct Labor Costs Incurred         $ 4,000

Cost of Goods Manufactured      $ 8,000

Factory Overhead                          $ 8,000

What is the amount of direct materials used?

a. $1,000

b. $4,000

c. $7,000

d. $3,000

What numbers do I use to figure this out?