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 1,000 pounds of alloy in process, which were 40% complete as to conversion. The Work in Process balance for these 1,000 pounds was $146,400, determined as follows:

Direct materials (1,000 x $140)	$140,000
Conversion (1,000 x 40% x $16)	6,400
	$146,400

During May, the Casting Department was charged $1,278,400 for 9,400 pounds of alloy and $56,640 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 9,700 pounds of finished castings to the Machining Department. The May 31 inventory in process was 20% 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	fill in the blank 7e34bc08e014067_2
	Materials-Alloy		fill in the blank 7e34bc08e014067_4

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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	fill in the blank d0254e039066fa1_2	fill in the blank d0254e039066fa1_3
	Wages Payable	fill in the blank d0254e039066fa1_5	fill in the blank d0254e039066fa1_6
	Factory Overhead-Casting Department	fill in the blank d0254e039066fa1_8	fill in the blank d0254e039066fa1_9

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a3. Prepare the May journal entry for the Casting Department for the completed production transferred to the Machining Department.

	Work in Process-Machining Department	fill in the blank 5a59a1fc4feafbb_2
	Work in Process-Casting Department		fill in the blank 5a59a1fc4feafbb_4

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b. Determine the Work in ProcessCasting Department May 31 balance. $fill in the blank 96a60bf78fed05b_1

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 materials	Decrease	$fill in the blank 96a60bf78fed05b_3
Change in conversion	Decrease	fill in the blank 96a60bf78fed05b_5

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