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 340 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 340 pounds was $53,448, determined as follows: 1 Direct materials (340 × $150) $51,000.00 2 Conversion (340 × 60% × $12) 2,448.00 3 $53,448.00 During May, the Casting Department was charged $379,200 for 2,400 pounds of alloy and $19,088 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,540 pounds of finished castings to the Machining Department. The May 31 inventory in process was 25% complete as to conversion. A. (1) On May 1, prepare the journal entry for the Casting Department for the materials charged to production.* (2) On May 31, prepare the journal entry for the Casting Department for the conversion costs charged to production.* (3) 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 exact wording of account titles. 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).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 340 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 340 pounds was $53,448, determined as follows:

1	Direct materials (340 × $150)	$51,000.00
2	Conversion (340 × 60% × $12)	2,448.00
3		$53,448.00

During May, the Casting Department was charged $379,200 for 2,400 pounds of alloy and $19,088 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,540 pounds of finished castings to the Machining Department. The May 31 inventory in process was 25% complete as to conversion.

(1)	On May 1, prepare the journal entry for the Casting Department for the materials charged to production.*
(2)	On May 31, prepare the journal entry for the Casting Department for the conversion costs charged to production.*
(3)	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 exact wording of account titles.

Determine the Work in Process-Casting Department May 31 balance.

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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