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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 4200 vases and completed and transferred 3600 vases during the month. It has 600 vases in the process at the end of the month. It incurred direct labor charges of $1500 and other manufacturing costs of $900, which included electricity costs of $400. 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.
Required:
What is the journal entry to record tungsten carbide purchased and used in production during July?
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