Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The jou
rnal entry to record June production activities for overhead allocation is:
Direct materials used $ 104,000
Direct labor used 177,000
Predetermined overhead rate (based on direct labor) 160 %
Goods transferred to finished goods 449,000
Cost of goods sold 461,000
Credit sales 980,000
a. Debit Work in Process Inventory $177,000; credit Factory Overhead $177,000.
b. Debit Factory Overhead $283,200; credit Cash $283,200.
c. Debit Work in Process Inventory $177,000; credit Cash $177,000.
d. Debit Work in Process Inventory $283,200; credit Factory Overhead $283,200.
e. Debit Work in Process Inventory $177,000; credit Factory Payroll $177,000.
Direct materials used $ 104,000
Direct labor used 177,000
Predetermined overhead rate (based on direct labor) 160 %
Goods transferred to finished goods 449,000
Cost of goods sold 461,000
Credit sales 980,000
a. Debit Work in Process Inventory $177,000; credit Factory Overhead $177,000.
b. Debit Factory Overhead $283,200; credit Cash $283,200.
c. Debit Work in Process Inventory $177,000; credit Cash $177,000.
d. Debit Work in Process Inventory $283,200; credit Factory Overhead $283,200.
e. Debit Work in Process Inventory $177,000; credit Factory Payroll $177,000.
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