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	$	90,000
Direct labor used	$	165,600
Predetermined overhead rate (based on direct labor)		100	%
Goods transferred to finished goods	$	434,000
Cost of goods sold	$	446,000
Credit sales	$	813,600

Multiple Choice

• Debit Accounts Receivable $813,600; credit Cost of Goods Sold $813,600.

• Debit Accounts Receivable $813,600; credit Sales $367,600; credit Finished Goods Inventory $446,000.

• Debit Cost of Goods Sold $446,000; credit Sales $446,000.

• Debit Finished Goods Inventory $446,000; debit Sales $813,600; credit Accounts Receivable $813,600; credit Cost of Goods Sold $446,000.

• Debit Accounts Receivable $813,600; credit Sales $813,600; debit Cost of Goods Sold $446,000; credit Finished Goods Inventory $446,000.

Answer 1

E. Debit Accounts Receivable $813,600; credit Sales $813,600; debit Cost of Goods Sold $446,000; credit Finished Goods Inventory $446,000.

The journal entry to record June sales is:

General Journal	Debit	Credit
Accounts Receivable	$813,600
Sales		$813,600
Cost of Goods Sold	$446,000
Finished Goods Inventory		$446,000