Answer the Following Questions Using the Information Below:
Stefan Ceramics $\begin{array} { l } \text {Work in Process - Molding }&\$2,400 \\ \text { Accounts Pavable Control}&\$2,400 \\\end{array}$

question 90

Multiple Choice

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 designs it as per the requirement of the customers.
During the month of July, molding department purchased 500 kgs of tungsten carbide at $60 per kg. 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 end of the month. It also had no beginning inventory of vases. The ending inventory was 50% complete in respect of conversion costs.
-The journal entry to record tungsten carbide purchased and used in production during July is ________.

• A)\(\begin{array} { l }
• \text {Work in Process - Molding }&\$2,400 \\ \text { Accounts Pavable Control}&\$2,400 \\
• \end{array}\)
• B)\(\begin{array} { l }
• \text {Work in Process - Molding }&\$3,000 \\ \text {Accounts Pawable Control }&\$3,000 \\
• \end{array}\)
• C)\(\begin{array} { l }
• \text {Accounts Payable Control }& \$2,400\\ \text { Work in process - Molding}&\$2,400 \\
• \end{array}\)
• D)\(\begin{array} { l }
• \text {Accounts Payable Control }&\$3,000 \\ \text {Work in process - Molding }&\$3,000 \\
• \end{array}\)

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Definitions:

Pension Liability

The amount of money a company is required to pay into its employees' retirement plans in the future.

Accumulated Benefit Obligation

An estimate of the total amount of an employer's obligation for pension benefits earned by employees to date, not based on future salary increases.

Plan Assets

Assets specifically identified to fund the obligations of a pension or other employee benefit plan.

Pension Funding

The financial contributions made by a company to a defined benefit pension plan to meet future pension obligations to retirees.