Question
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,
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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, then poured into molds to produce the castings. On May 1, there were 1,200 pounds of alloy in process, which were 40% complete as to conversion. The Work in Process balance for these 1,200 pounds was $154,080, determined as follows: Direct materials (1,200 x $120) $144,000 Conversion (1,200 x 40% x $21) 10,080 $154,080 During May, the Casting Department was charged $1,310,800 for 11,300 pounds of alloy and $90,760 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 11,600 pounds of finished castings to the Machining Department. The May 31 inventory in process was 25% complete as to conversion.
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Prepare the May journal entry for the Casting Department for the completed production transferred to the Machining Department.
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Determine the Work in ProcessCasting Department May 31 balance.
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Compute the change in the costs per equivalent unit for direct materials and conversion from the previous month (April). Cost per Equivalent Unit
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Change in materials
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Change in conversion
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