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	$	107,000
Direct labor used		180,000
Predetermined overhead rate (based on direct labor)		155	%
Goods transferred to finished goods		452,000
Cost of goods sold		464,000
Credit sales		830,000

• Debit Work in Process Inventory $180,000; credit Cash $180,000.

• Debit Factory Wages Payable $180,000; credit Cash $180,000.

• Debit Work in Process Inventory $180,000; credit Factory Wages Payable $180,000.

• Debit Cost of Goods Sold $180,000; credit Factory Wages Payable $180,000.

• Debit Work in Process Inventory $180,000; credit Raw Materials Inventory $180,000.

2.

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.

	Units of Product	Percent of Conversion Added
Beginning Work in Process	207,000	70	%
Units started	550,000	100	%
Units completed	613,100	100	%
Ending Work in Process	143,900	70	%

Multiple Choice

• 858,730

• 613,100

• 757,000

• 758,000

• 713,830