4/ Dazzle, Inc. produces beads for jewelry making use. The following information
ID: 2543903 • Letter: 4
Question
4/ 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:
Multiple Choice
Debit Raw Materials Inventory $96,000; credit Accounts Payable $96,000.
Debit Raw Materials Inventory $96,000; credit Finished Goods Inventory $96,000.
Debit Cost of Goods Sold $96,000; credit Finished Goods Inventory $96,000.
Debit Work in Process Inventory $96,000; credit Raw Materials Inventory $96,000.
Debit Work in Process Inventory $96,000; credit Cost of Goods Sold $96,000.
5/ Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $960 and sold them on credit to Percy Corporation for $1,395. The complete journal entry to be made by Wyman at the time of this sale is:
Multiple Choice
Debit Accounts Receivable $1,395; credit Sales $1,395; debit Cost of Goods Sold $960; credit Finished Goods Inventory $960.
Debit Accounts Receivable $1,395; credit Sales $435; credit Finished Goods Inventory $960.
Debit Cost of Goods Sold $1,395; credit Sales $1,395.
Debit Finished Goods Inventory $960; debit Sales $1,395; credit Accounts Receivable $1,395; credit Cost of Goods Sold $960.
Debit Accounts Receivable $1,395; debit Selling expense $960; credit Sales $1,395; credit Cost of Goods Sold $960.
Direct materials used $ 96,000 Direct labor used 169,000 Predetermined overhead rate (based on direct labor) 160 % Goods transferred to finished goods 441,000 Cost of goods sold 453,000 Credit sales 819,000Explanation / Answer
1. answer will be Debit Raw Materials Inventory $96,000; credit Finished Goods Inventory $96,000.
2. answer will be Debit Accounts Receivable $1,395; credit Sales $1,395; debit Cost of Goods Sold $960; credit Finished Goods Inventory $960.
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