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	$	105,000
Direct labor used		178,000
Predetermined overhead rate (based on direct labor)		160	%
Goods transferred to finished goods		450,000
Cost of goods sold		462,000
Credit sales		828,000

Multiple Choice

• Debit Factory Wages Payable $178,000; credit Cash $178,000.

• Debit Work in Process Inventory $178,000; credit Factory Wages Payable $178,000.

• Debit Cost of Goods Sold $178,000; credit Factory Wages Payable $178,000.

• Debit Work in Process Inventory $178,000; credit Raw Materials Inventory $178,000.

• Debit Work in Process Inventory $178,000; credit Cash $178,000