Question: Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:
| Direct materials used |
$95,000 |
| Direct labor used |
168,000 |
| Predetermined overhead rate (based on direct labor) |
155% |
| Goods transferred to finished goods |
440,000 |
| Cost of goods sold |
452,000 |
| Credit sales |
818,000 |
Debit Raw Materials Inventory $95,000; credit Accounts Payable $95,000.
Debit Raw Materials Inventory $95,000; credit Finished Goods Inventory $95,000.
Debit Cost of Goods Sold $95,000; credit Finished Goods Inventory $95,000.
Debit Work in Process Inventory $95,000; credit Raw Materials Inventory $95,000.
Debit Work in Process Inventory $95,000; credit Cost of Goods Sold $95,000.