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
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 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 | |
Multiple Choice
Debit Work in Process Inventory $177,000; credit Factory Overhead $177,000.
Debit Factory Overhead $283,200; credit Cash $283,200.
Debit Work in Process Inventory $177,000; credit Cash $177,000.
Debit Work in Process Inventory $177,000; credit Factory Payroll $177,000.
Debit Work in Process Inventory $283,200; credit Factory Overhead $283,200.
5/ Wilturner Company incurs $87,000 of labor related directly to the product in the Assembly Department, $36,000 of labor related to the Assembly Department as a whole, and $23,000 of labor for services that help production in both the Assembly and Finishing departments. The amount of direct labor and factory overhead respectively for the Assembly Department are:
Multiple Choice
$87,000 and $59,000.
$123,000 and $23,000.
$110,000 and $36,000.
$146,000 and $0.
$87,000 and $23,000.
6/ Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $850 and sold them on credit to Percy Corporation for $1,175. The complete journal entry to be made by Wyman at the time of this sale is:
Multiple Choice
Debit Accounts Receivable $1,175; credit Sales $1,175; debit Cost of Goods Sold $850; credit Finished Goods Inventory $850.
Debit Accounts Receivable $1,175; credit Sales $325; credit Finished Goods Inventory $850.
Debit Cost of Goods Sold $1,175; credit Sales $1,175.
Debit Finished Goods Inventory $850; debit Sales $1,175; credit Accounts Receivable $1,175; credit Cost of Goods Sold $850.
Debit Accounts Receivable $1,175; debit Selling expense $850; credit Sales $1,175; credit Cost of Goods Sold $850.
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