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 material usage is:
| Direct materials used | $ | 104,000 | |
| Direct labor used | 177,000 | ||
| Predetermined overhead rate (based on direct labor) | 155 | % | |
| Goods transferred to finished goods | 449,000 | ||
| Cost of goods sold | 461,000 | ||
| Credit sales | 827,000 | ||
Multiple Choice
Top of Form
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Debit Work in Process Inventory $104,000; credit Raw Materials Inventory $104,000.
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Debit Cost of Goods Sold $104,000; credit Finished Goods Inventory $104,000.
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Debit Raw Materials Inventory $104,000; credit Finished Goods Inventory $104,000.
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Debit Work in Process Inventory $104,000; credit Cost of Goods Sold $104,000.
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Debit Raw Materials Inventory $104,000; credit Accounts Payable $104,000.
Bottom of Form
49
Williams Company computed its cost per equivalent unit for direct materials to be $2.70 and its cost per equivalent unit for conversion to be $3.42. A total of 212,000 units of product were completed and transferred out as finished goods during the month. The ending Work in Process inventory consists of 30,000 equivalent units of direct materials and 30,000 equivalent units of conversion costs. The amount that should be reported in ending Work in Process Inventory is:
Multiple Choice
Top of Form
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$1,378,440.
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$1,297,440.
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$102,600.
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$183,600.
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$81,000.
Bottom of Form