Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(6-9) Answer the following questions using the information below: Stefan Ceramics is in the business of selling ceramic vases. It has two departments - molding

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
(6-9) Answer the following questions using the information below: Stefan Ceramics is in the business of selling ceramic vases. It has two departments - molding and finishing. Molding department purchases tungsten carbide and produces ceramic vases out of it. Ceramic Vases are then transferred to finishing department, which completes coating During the month of July, molding department purchased and used 500 kgs of tungsten carbide at $60 per kg. Tungsten carbide is added at the start of the process. It started manufacture of 4,000 vases and completed and transferred 3.200 vases during the month. It has 800 vases in the process at the end of the month. It incurred direct labor charges of $1,000 and other manufacturing costs of $500, which included electricity costs of $200. Stefan had no inventory of tungsten carbide at the beginning and end of the month. It also had no beginning inventory of vases. The ending inventory was 100% complete with respect to direct materials and 50% complete with respect to conversion costs. The journal entry to record tungsten carbide purchased and used in production during July is Dr) Work in Process-Molding $24,000 C) Accounts Payable Control $24,000 Dr) Accounts Payable Control $30.000 CH) Work in Process-Molding $30.000 Dr) Accounts Payable Control $24,000 Cr) Work in Process-Molding $24,000 Dr) Work in Process-Molding $30,000 Cr) Accounts Payable Control $30,000 The journal entry to record direct labor for July is Dr) Work in Process-Molding $3,000 Cr) Accounts Payable Control $3,000 Dr) Work in Process-Molding $1,000 Cr) Wages Payable Control $1,000 Dr) Work in Process-Molding $1,000 Cr) Overhead Control $1,000 Dr) Work in Process-Molding $1,000 Cr) Work in Process-Finishing $1,000 What is the total conversion costs for the month of July? $1,500 $1,000 $1,300 $1,700 What is the cost of tungsten carbide that will be assigned to vases finished and transferred to the finishing department for the month of July! $24,000 $28,000 $26,000 $30,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Audit Emphasis Management In Organizations

Authors: Juarez Pinto, Anísio Cândido Pereira, Joshua Onome Imoniana

1st Edition

3659942332, 978-3659942334

More Books

Students also viewed these Accounting questions