Stefan Ceramics is in the business of selling ceramic vases. It has two departments -...
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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 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 3,400 vases during the month. It has 800 vases in the process at the end of the month. It incurred direct labor charges of $1,700 and other manufacturing costs of $1,000, 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 55% complete in respect of conversion costs. Which of the following journal entries would be correct to record direct labor for July? $1,700 O A. Work in ProcessMolding Overhead Control $1,700 $1,700 OB. Work in ProcessMolding Work in ProcessFinishing $1,700 $1,700 O C. Work in Process-Molding Wages Payable Control $1,700 $201,600 OD. Work in Process-Molding Accounts Payable Control $201,600
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