Cost of Production and Journal Entries 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) Conversion (230 60% x $18) $30,360 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. a1. Prepare the May journal entry for the Casting Department for the materials charged to production. If an amount box does not require an entry, leave it blank. Work in Process-Casting Department Materials-Alloy Feedback 350,000 350,000 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 Wages Payable Factory Overhead 49,600 19,840 29,760 a3. Prepare the May journal entry for the Casting Department for the completed production transferred to the Machining Department. If an amount box does not require an entry, leave it blank. Factory Overhead Work in Process-Casting Department 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 Increased 8 Change in conversion Increased $ 2