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	$	98,000
Direct labor used		171,000
Predetermined overhead rate (based on direct labor)		155	%
Goods transferred to finished goods		443,000
Cost of goods sold		455,000
Credit sales		821,000

Multiple Choice

• Debit Raw Materials Inventory $98,000; credit Accounts Payable $98,000.

• Debit Raw Materials Inventory $98,000; credit Finished Goods Inventory $98,000.

• Debit Cost of Goods Sold $98,000; credit Finished Goods Inventory $98,000.

• Debit Work in Process Inventory $98,000; credit Raw Materials Inventory $98,000.

• Debit Work in Process Inventory $98,000; credit Cost of Goods Sold $98,000.