AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, then poured into molds to produce the castings. On May 1, there were 230 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 230 pounds was $32,844, determined as follows:

Direct materials (230 $132)	$30,360
Conversion (230 60% $18)	2,484
	$32,844

During May, the Casting Department was charged $350,000 for 2,500 pounds of alloy and $19,840 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,530 pounds of finished castings to the Machining Department. The May 31 inventory in process was 44% complete as to conversion.

Required:

a.

1.	On May 1, prepare the journal entry for the Casting Department for the materials charged to production.*
2.	On May 31, prepare the journal entry for the Casting Department for the conversion costs charged to production.*
3.	On May 31, prepare the journal entry for the Casting Department for the completed production transferred to the Machining Department.*
*	Refer to the Chart of Accounts for exact wording of account titles.

b.

Determine the Work in Process-Casting Department May 31 balance.

c.

Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (April).

a(1). On May 1, prepare the journal entry for the Casting Department for the materials charged to production. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

a(2). On May 31, prepare the journal entry for the Casting Department for the conversion costs charged to production. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3

a(3). On May 31, prepare the journal entry for the Casting Department for the completed production transferred to the Machining Department. Refer to the Chart of Accounts for exact wording of account titles.

b. Determine the Work in Process-Casting Department May 31 balance.

c. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (April).

	Cost per Equivalent Unit
Change in materials
Change in conversion