Costs per equivalent unit: Direct Materials Conversion 1,342,120 402,636 150,800 153,740 Total costs for January in Cutting Department Total equivalent units Cost per equivalent unit Costs assigned to production: 8.90 556,376 Direct Materials Conversion Total 119,854 Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Cutting Department Cost allocated to completed and partially completed units: Inventory in process, January 1 balance To complete inventory in process, January 1 Cost of completed January 1 work in process Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Cutting Department b. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December). I Check My Work 1 more Check My Work uses remaining. Save and Exit Sub All work saved. eBook Calculator Print item 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 1,100 pounds of alloy in process, which were 40% complete as to conversion. The Work in Process balance for these 1,100 pounds was $167,640, determined as follows: Direct materials (1,100 x $150) $165,000 Conversion (1,100 x 40% $6) 2,640 $167,640 During May, the Casting Department was charged $1,503,800 for 10,300 pounds of alloy and $20,800 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 10,700 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 1,503.800 Materials-Alloy 1,563,00 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 $2,000 Wages Payable 20,800 Factory Overhead-Casting Department 31.200 UNDE Prin lemn Materials-Alloy 1,503,800 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 $2,000 Wages Payable 20,800 Factory Overhead-Casting Department 31,200 a3. Prepare the May Journal entry for the Casting Department for the completed production transferred to the Machining Department Work in Process Machining Department Work in Process Casting Department b. Determine the Work in Process --Casting Department May 31 balance. c. Compute the change in the costs per equivalent unit for direct materials and conversio version from the previous month (April). Cost per Equivalent Unit Change in materials Increase Change in conversion Increase