Calculator eBook Cost of Production and Journal Entries AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first meilted in a crucible, then poured On May 1, there were 700 pounds of alloy in process, which were 40% complete as to conversion. The work in Process balance for these 700 pounds was $60,480. determined as follows: $56,000 4,480 $60,480 Direct materials (700 x $80) Conversion (700 x 40% x $16) During May, the Casting Department was charged $501,600 for 6,600 pounds of alloy and $39,720 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 6,800 pounds of finished castings to the Machining Department. The May 31 inventory in process was 206 complete as to conversion. a1. Prepare the May journal entry for the Casting Department for the materials charged to production. Work in Process-Casting Department 501,600 Materials-Alloy $01,600 Check My Work a1. Remember there are three different areas of inventory, materials, work in process, and finished goods a2. Prepare the May journal entry for the Casting Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank Work in Process-Casting Department. [ x 60,480 Wages Payable Factory Overhead-Casting Department Check My Work a2. Remember that a work in process account accumulates all costs (direct materials, direct labor, manufacturing overheed) that are added to the units in a given department. What types of costs are considered conversion costs? a3. Prepare the May journal entry for the Casting Department for the completed production transferred to the Machining Department Work in Work in Feedback Check My Work a3. Are these goods ready for finished goods inventory or do these units need to be transferred to another department first? b. Determine the Work in Process-Casting Department May 31 balance c. Compute the change in the costs per equivalent unit for direct materials and conversion from the previous month (April) Cost per Equivalent Unit Change in materialsDescrease Change in conversion Check My Work b. How many units are still in process at the end of the period? . pare the materials and conversion costs per equivalent uitfor April and May. The Apri osts per equivalentuit are determ ned from the May 1 work in pr s i entry. (Pi Previous