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 260 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 260 pounds was $37,180, determined as follows: Direct materials (260 x $134) $34,840.00 Conversion (260 x 60% × $15) 2,340.00 $37,180.00 During May, the Casting Department was charged $276,000 for 2,000 pounds of alloy and $15,632 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,060 pounds of finished castings to the Machining Department. The May 31 inventory in process was 25% complete as to conversion. Required: a1. On May 1, prepare the journal entry for the Casting Department for the materials charged to production." a2. On May 31, prepare the journal entry for the Casting Department for the conversion costs charged to production." a3. On May 31, prepare the journal entry for the Casting Department for the completed production transferred to the Machining Department."
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 260 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 260 pounds was $37,180, determined as follows: Direct materials (260 x $134) $34,840.00 Conversion (260 x 60% × $15) 2,340.00 $37,180.00 During May, the Casting Department was charged $276,000 for 2,000 pounds of alloy and $15,632 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,060 pounds of finished castings to the Machining Department. The May 31 inventory in process was 25% complete as to conversion. Required: a1. On May 1, prepare the journal entry for the Casting Department for the materials charged to production." a2. On May 31, prepare the journal entry for the Casting Department for the conversion costs charged to production." a3. On May 31, prepare the journal entry for the Casting Department for the completed production transferred to the Machining Department."
Chapter1: Financial Statements And Business Decisions
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Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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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 260 pounds of alloy in process, which were 60% complete as to conversion. The
Work in Process balance for these 260 pounds was $37,180, determined as follows:
Direct materials (260 × $134)
$34,840.00
1
Conversion (260 × 60% × $15)
2,340.00
2
$37,180.00
During May, the Casting Department was charged $276,000 for 2,000 pounds of alloy and $15,632 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,060 pounds of finished castings to the Machining
Department. The May 31 inventory in process was 25% complete as to conversion.
Required:
a1. On May 1, prepare the journal entry for the Casting Department for the materials charged to production.*
a2. On May 31, prepare the journal entry for the Casting Department for the conversion costs charged to production.*
a3. On May 31, prepare the journal entry for the Casting Department for the completed production transferred to the Machining Department.*
*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line
on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
b. Determine the Work in 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).
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