Question

Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

	direct materials used 98,000 direct labor uses 171000 predetermined overhead rate (based on direct labor) 150% goods transferred to finished goods 443,000 cost of goods sold 455,000 credit sales 920,000

A. debit work in process inventory 171,000; credit cash 171,000

B. debit work in process inventory 171,000; credit factory overhead 171,000

C. debit work in process inventory 171,000; credit factory payroll 171,000

D. debit work in process inventory 171,000; credit factory overhead 265,500

Answer 1

The entries for June sales will be

Debit	Accounts Receivable $920,000
Credit	Sales $920,000

And

Debit	Cost of Goods Sold $455,000
Credit	Finished goods inventory $455,000