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 x $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.

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.

	CashFactory Overhead-Casting DepartmentFactory OverheadMaterials-AlloyWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -
	CashFactory OverheadMaterials-AlloyWages PayableWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -

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.

	CashFactory OverheadFinished GoodsWages ExpenseWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -
	Accounts ReceivableCashMaterialsWages PayableWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -
	Accounts PayableCashFactory OverheadFinished GoodsWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -

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.

	CashFactory OverheadFinished GoodsMaterialsWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -
	CashFactory OverheadFinished GoodsMaterialsWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -

b. Determine the Work in ProcessCasting Department May 31 balance. $fill in the blank 7be385f6dff401c_1

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	DecreasedIncreased	$fill in the blank 7be385f6dff401c_3
Change in conversion	DecreasedIncreased	$fill in the blank 7be385f6dff401c_5

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: $30,360 Direct materials (230 x $132) 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 to the Machining Department. The May 31 inventory in process was 44% complete as to conversion. applied to the department at a rate of 150% of direct labor. The department transferred out 2,530 pounds of finished castings al. 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. 88 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. 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. 88 b. Determine the Work 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 Change in conversion