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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,
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 there were pounds of alloy in process, which were complete as to conversion. The Work in Process balance for these pounds was $ determined as follows:
Line Item Description Amount
Direct materials times $ $
Conversion times times $
Total $
During May, the Casting Department was charged $ for pounds of alloy and $ for direct labor. Factory overhead is applied to the department at a rate of of direct labor. The department transferred out pounds of finished castings to the Machining Department. The May inventory in process was complete as to conversion.
Question Content Area
a Journalize the May entry for the Casting Department for the materials charged to production. If an amount box does not require an entry, leave it blank.
blankAccountDebitCredit
blank
Work in ProcessCasting Department
MaterialsAlloy
Feedback Area
Feedback
a Remember there are three different areas of inventory; Materials, Work in Process, and Finished Goods.
Question Content Area
a Journalize the May entry for the Casting Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank.
blankAccountDebitCredit
blank
Work in ProcessCasting Department
Wages Payable
Factory Overhead
Feedback Area
Feedback
a Remember that a Work in Process account accumulates all costs Direct Materials, Direct Labor, Manufacturing Overhead that are added to the units in a given department. What types of costs are considered conversion costs?
Question Content Area
a Journalize the May 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.
blankAccountDebitCredit
blank
Work in ProcessMachining Department
Work in ProcessCasting Department
Feedback Area
Feedback
a Are these goods ready for finished goods inventory or do these units need to be transferred to another department first?
Question Content Area
b Determine the Work in ProcessCasting Department May balance.
fill in the blank of $
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
Line Item Description Increase or Decrease Amount
Change in materials fill in the blank of
Increased
fill in the blank of $
Change in conversion fill in the blank of
Increased
fill in the blank of $
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