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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 600 pounds of alloy in process, which were 70% complete as to conversion. The Work in Process balance for these 600 pounds was $80,520, determined as follows:

Direct materials (600 $130)	$78,000
Conversion (600 70% $6)	2,520
	$80,520

During May, the Casting Department was charged $705,600 for 5,600 pounds of alloy and $11,160 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 50% as to conversion.

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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 DepartmentFactory Overhead-Machining DepartmentMaterials-AlloyWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -
	Factory Overhead-Casting DepartmentMaterials-AlloyWages PayableWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -

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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 OverheadFinished GoodsWages ExpenseWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -
	Accounts ReceivableMaterialsWages PayableWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -
	Accounts PayableFactory OverheadFinished GoodsWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -

Question Content Area

a3. Prepare the May journal entry for the Casting Department for the production transferred to the Machining Department. If an amount box does not require an entry, leave it blank.

blank	Factory OverheadFinished GoodsMaterialsWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -
	Factory OverheadFinished GoodsMaterialsWork in Process-Casting DepartmentWork in Process-Machining Department	- Select -	- Select -

Question Content Area

b. Determine the Work in ProcessCasting Department May 31 balance. $fill in the blank c072f907105dfb9_1

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	DecreaseIncrease	$fill in the blank c072f907105dfb9_3
Change in conversion	DecreaseIncrease	fill in the blank c072f907105dfb9_5