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 | $ | 88,000 | |
| Direct labor used | 161,000 | ||
| Predetermined overhead rate (based on direct labor) | 150 | % | |
| Goods transferred to finished goods | 433,000 | ||
| Cost of goods sold | 445,000 | ||
| Credit sales | 811,000 | ||
Multiple Choice
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Debit Work in Process Inventory $161,000; credit Factory Payroll Payable $161,000.
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Debit Cost of Goods Sold $161,000; credit Factory Payroll Payable $161,000.
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Debit Work in Process Inventory $161,000; credit Raw Materials Inventory $161,000.
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Debit Work in Process Inventory $161,000; credit Cash $161,000.
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Debit Factory Payroll Payable $161,000; credit Cash $161,000.
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Following is a partial process cost summary for Mitchell Manufacturing’s Canning Department.
| Equivalent Units of Production | Direct Materials | Conversion | ||||||||
| Units Completed and transferred out | 72,000 | 72,000 | ||||||||
| Units in Ending Work in Process: | ||||||||||
| Direct Materials (15,000 * 100%) | 15,000 | |||||||||
| Conversion (15,000 * 80%) | 12,000 | |||||||||
| Equivalent Units of Production | 87,000 | 84,000 | ||||||||
| Cost per Equivalent Unit | ||||||||||
| Costs of beginning work in process | $ | 43,500 | $ | 63,800 | ||||||
| Costs incurred this period | 145,300 | 195,400 | ||||||||
| Total costs | $ | 188,800 | $ | 259,200 | ||||||
| Cost per equivalent unit | $ | 2.17 | per EUP | $ | 3.09 | per EUP | ||||
The total materials costs transferred out of the Canning Department equals:
Multiple Choice
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$156,240.
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$188,800.
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$188,790.
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$222,480.
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$182,280.
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