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 goods transferred from production to finished goods is:

Direct materials used $87,000
Direct labor used 160,000
Predetermined overhead rate (based on direct labor) 155%
Goods transferred to finished goods 432,000
Cost of goods sold 444,000
Credit sales 810,000

Explanation:

The journal entry is shown below:

Finished goods inventory A/c Dr $432,000

      To Goods in process inventory A/c $432,000

(Being the  goods transferred from production to finished goods is recorded)

For recording this given transaction, we debited the finished goods inventory account and credited the goods in process inventory account.

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