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	$	94,000
Direct labor used		167,000
Predetermined overhead rate (based on direct labor)		160	%
Goods transferred to finished goods		439,000
Cost of goods sold		451,000
Credit sales		817,000

Multiple Choice

• Debit Factory Payroll Payable $167,000; credit Cash $167,000.

• Debit Work in Process Inventory $167,000; credit Factory Payroll Payable $167,000.

• Debit Cost of Goods Sold $167,000; credit Factory Payroll Payable $167,000.

• Debit Work in Process Inventory $167,000; credit Raw Materials Inventory $167,000.

• Debit Work in Process Inventory $167,000; credit Cash $167,000.