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Stefan Ceramics is in the business of selling ceramic vases. It has two departments - molding and finishing. Molding department purchases tungsten carbide and produces
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 designs it as per the requirement of the customers. During the month of July, molding department purchased 650 kgs of tungsten carbide at $210 per kg. It started manufacture of 3,500 vases and completed and transferred 3,200 vases during the month. It has 300 vases in the process at the end of the month. It incurred direct labor charges of $1,200 and other manufacturing costs of $1,100, which included electricity costs of $500. Stefan had no inventory of tungsten carbide at the end of the month. It also had no beginning inventory of vases. The ending inventory was 50% complete in respect of conversion costs. What is the total conversion costs fo the month of July? O A. $1,800o O B. S,200 oc. $2.800 O D. $2,300
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