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 720 kgs of tungsten carbide at $280 per kg. It started manufacture of 4,200 vases and completed and transferred 3,300 vases during the month. It has 900 vases in the process at the end of the month. It incurred direct labor charges of $1,600 and other manufacturing costs of $1,500, which included electricity costs of $900. 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 55% complete in respect of conversion costs. Which of the following journal entries would be correct to record direct labor for July? ... A. Work in Process-Molding $1,600 Wages Payable Control $1,600 B. Work in Process-Molding $1,600 Work in Process-Finishing $1,600 O C. Work in Process-Molding $201,600 Accounts Payable Control $201,600 O D. Work in Process-Molding $1,600 Overhead Control $1,600
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 720 kgs of tungsten carbide at $280 per kg. It started manufacture of 4,200 vases and completed and transferred 3,300 vases during the month. It has 900 vases in the process at the end of the month. It incurred direct labor charges of $1,600 and other manufacturing costs of $1,500, which included electricity costs of $900. 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 55% complete in respect of conversion costs. Which of the following journal entries would be correct to record direct labor for July? ... A. Work in Process-Molding $1,600 Wages Payable Control $1,600 B. Work in Process-Molding $1,600 Work in Process-Finishing $1,600 O C. Work in Process-Molding $201,600 Accounts Payable Control $201,600 O D. Work in Process-Molding $1,600 Overhead Control $1,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1
Transcribed Image Text:Stefan Ceramics is in the business of selling ceramic vases. It has two departments
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.
molding and finishing. Molding department
During the month of July, molding department purchased 720 kgs of tungsten carbide at $280 per kg. It started manufacture of 4,200 vases
and completed and transferred 3,300 vases during the month. It has 900 vases in the process at the end of the month. It incurred direct
labor charges of $1,600 and other manufacturing costs of $1,500, which included electricity costs of $900. 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 55% complete in respect of
conversion costs.
Which of the following journal entries would be correct to record direct labor for July?
A. Work in Process-Molding
$1,600
Wages Payable Control
$1,600
B. Work in Process-Molding
$1,600
Work in Process-Finishing
$1,600
C. Work in Process-Molding
$201,600
Accounts Payable Control
$201,600
D. Work in Process-Molding
$1,600
Overhead Control
$1,600
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education