Dazzle, Inc A) Debit Raw Materials Inventory $87,000; Credit Finished Goods Inventory

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: $\begin{array} { | l | r | } \hline \text { Direct materials used } & \$ 87,000 \\\hline \text { Direct labor used } & 160,000 \\\hline \text { Predetermined overhead rate (based on direct labor) } & 155 \% \\\hline \text { Goods transferred to finished goods } & 432,000 \\\hline \text { Cost of goods sold } & 444,000 \\\hline \text { Credit sales } & 810,000 \\\hline\end{array}$

A) Debit Raw Materials Inventory $87,000; credit Finished Goods Inventory $87,000.
B) Debit Work in Process Inventory $87,000; credit Raw Materials Inventory $87,000.
C) Debit Work in Process Inventory $87,000; credit Cost of Goods Sold $87,000.
D) Debit Raw Materials Inventory $87,000; credit Accounts Payable $87,000.
E) Debit Cost of Goods Sold $87,000; credit Finished Goods Inventory $87,000.

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