1. Question Content Area

   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 600 pounds of alloy in process, which were 40% complete as to conversion. The Work in Process balance for these 600 pounds was $56,640, determined as follows:

   Direct materials (600 $90)	$54,000
   Conversion (600 40% $11)	2,640
   	$56,640

   During May, the Casting Department was charged $481,600 for 5,600 pounds of alloy and $22,640 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 5,800 pounds of finished castings to the Machining Department. The May 31 inventory in process was 25% complete as to conversion.

   Question Content Area

   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.

   blank	Factory Overhead-Casting Department, Factory Overhead-Machining Department, Materials-Alloy, Work in Process-Casting Department, Work in Process-Machining Department	- Select -	- Select -
   	Factory Overhead-Casting Department, Materials-Alloy, Wages Payable, Work in Process-Casting Department, Work in Process-Machining Department	- Select -	- Select -

   Question Content Area

   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.

   blank	Factory Overhead, Finished Goods, Wages Expense, Work in Process-Casting Department, Work in Process-Machining Department	- Select -	- Select -
   	Accounts Receivable, Materials, Wages Payable, Work in Process-Casting Department, Work in Process-Machining Department	- Select -	- Select -
   	Accounts Payable, Factory Overhead, Finished Goods, Work in Process-Casting Department, Work in Process-Machining Department	- Select -	- Select -

   Question Content Area

   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.

   	Factory Overhead, Finished Goods, Materials, Work in Process-Casting Department, Work in Process-Machining Department	- Select -	- Select -
   	Factory Overhead, Finished Goods, Materials, Work in Process-Casting Department, Work in Process-Machining Department	- Select -	- Select -

   Question Content Area

   b. Determine the Work in ProcessCasting Department May 31 balance.

   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, Increase	$fill in the blank
   Change in conversion	Decrease, Increase	fill in the blank