Answer the Following Questions Using the Information Below

question 119

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.
-What is the total conversion costs for the month of July?

• A) $1,700
• B) $1,500
• C) $1,300
• D) $1,000

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Definitions:

Employee Engagement

The level of emotional attachment an employee feels towards their company and its objectives, which affects their readiness to aid in achieving organizational triumphs.

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The capacity to learn, adapt, and improve skills or knowledge through instruction or practice.

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Psychologists who study how people interact with products, environments, and systems with the aim of improving usability and performance.

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The innate ability to recognize and understand the natural world through sensory information.