Cost of Production and Journal Entries

AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, allay 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 $\backslash$$$32,844,$ determined as follows :

Direct materials $(230*\backslash$$$132)$ $ $30,360$

Conversion $(230$x$60\%$x$18)$ $ $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.

a$1$ 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.

$

$

A$.$ cash

b$.$ Factory overhead$-$casting department

c$.$ Factory overhead

d$.$ Materials$-$ alloy

e$.$ Work in process casting department

f$.$ Work in process machine department

a$2.$ 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

$

$

a$.$ cash

b$.$ Factory overhead

c$.$ Finished goods

d$.$ Wages expenses

e$.$ Work in process casting department

f$.$ work in process machine department

a$3.$ 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

$

$

a$.$Cash

b$.$ Factory overhead

c$.$ Finished goods

d $.$Materials

e$.$ Work in process casting department

d$.$ work in process machine department

b $.$ Determine the Work in Process $-$ Casting Department May $31$ balance $.$ 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

$

a$.$ Decreased

b$.$ increased

Change in conversion Next

#

a$.$ Decreased

b$.$ Increased