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 300 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 300 pounds was $45,300, determined as follows:

1	Direct materials (300 $142)	$42,600.00
2	Conversion (300 60% $15)	2,700.00
3		$45,300.00

During May, the Casting Department was charged $342,700 for 2,300 pounds of alloy and $20,792 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,400 pounds of finished castings to the Machining Department. The May 31 inventory in process was 20% 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).

CHART OF ACCOUNTS

AccuBlade Castings Inc.

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials-Alloy
132	Materials-Steel
141	Work in Process-Casting Department
142	Work in Process-Machining Department
151	Factory Overhead-Casting Department
152	Factory Overhead-Machining Department
161	Finished Goods
171	Supplies
172	Prepaid Insurance
173	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
251	Wages Payable

EQUITY

311

Common Stock

340

Retained Earnings

351

Dividends

390

Income Summary

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.

PAGE 10

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.

PAGE 10

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

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