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 labor usage is:
           

Direct materials used	$	100,000​
Direct labor used		173,000​
Predetermined overhead rate (based on direct labor)		160​	%
Goods transferred to finished goods		445,000​
Cost of goods sold		457,000​
Credit sales		823,000​

A. Debit Cost of Goods Sold $173,000; credit Factory Wages Payable $173,000

B. Debit Work in Process Inventory $173,000; credit Factory Wages Payable $173,000

C. Debit Factory Wages Payable $173,000; credit Cash $173,000

D. Debit Work in Process Inventory $173,000; credit Raw Materials Inventory $173,000

E. Debit Work in Process Inventory $173,000; credit Cash $173,000

Answer 1

The journal entry to record June production activities for direct labor usage is Answer : B. Debit Work in Process Inventory $173,000; credit Factory Wages Payable $173,000 Working Notes: Credit Account Titles and Explanation Work in Process Inventory Factory Wages Payable (To record direct labor usage) Debit $173,000 $ 173,000