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 230 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 230 pounds was $32,844, determined as follows: Direct materials (230 x $132) Conversion (230 x 60% x $18) $30,360 2,484 $32,844 During May, the Casting Department was charged $350,000 for 2,500 pounds of alloy and $19,840 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,530 pounds of finished castings to the Machining Department. The May 31 inventory in process was 44% complete as to conversion.

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 230 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 230 pounds was $32,844, determined as follows: Direct materials (230 x $132) Conversion (230 x 60% x $18) $30,360 2,484 $32,844 During May, the Casting Department was charged $350,000 for 2,500 pounds of alloy and $19,840 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,530 pounds of finished castings to the Machining Department. The May 31 inventory in process was 44% complete as to conversion.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Subject: acounting
Parsley Metal Company casts blades for the turbine engine. Within the Casting Department, an alloy is melted in a crucible and then poured into molds to produce the castings. On October 1, 800 pounds of the alloy were in process, 40% complete as to conversion. The work-in-process balance for these 8000 pounds was $350,000, determined as follows: direct materials-$190,000, conversion costs-$160,000. During October, the Casting Department was charged $250,000 for 9,500 pounds of alloy and $165,500 for direct labor. Factory overhead is applied to the department at 150% of direct labor. The department transferred 9,150 pounds of finished castings to the Machining Department. The October -31 inventory in process was 20% complete as to conversion. Based on the above information, please answer questions a) to f). a) Please prepare the Equivalent Unit Schedule. Beginning Started & Completed Completed & Transferred Out Ending Total Whole Units E E [1] [4] [10] [13] Equivalent Unit Schedule…
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 230 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 230 pounds was $32,844, determined as follows:Description Dollar amountDirect materials (230 x $123) $28,290Conversion (230 x 60% x $18) 2,484Total direct materials and conversion 30,774During May, the Casting Department was charged $350,000 for 2,500 pounds of alloy and $19,840 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,530 pounds of finished castings to the Machining Department. The May 31 inventory in process was 44% complete as to conversion. a. Prepare the following May journal entries for the Casting Department: i. The materials charged to production ii. The conversion costs charged to…
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for October: All materials are added at the beginning of the process. Beginning work in process had 80,500 units, 30 percent complete with respect to conversion costs. Ending work in process had 14,000 units, 40 percent complete with respect to conversion costs. Started in process, 91,000 units. Required: 1. Prepare a physical flow schedule. Middelton Company Physical Flow Schedule Units to account for: Total units to account for Units accounted for: Units completed and transferred out: Total units accounted for 2. Compute equivalent units using the weighted average method. Weighted average method: Equivalent Units Direct Materials Conversion Costs 3.…
daho Lumber Company grows, harvests, and processes timber for use in construction. The following data pertain to the firm’s sawmill during November. Work in process, November 1 Direct material $ 98,500 Conversion 165,500 Costs incurred during November Direct material $ 598,700 Conversion 657,000 The equivalent units of activity for November were as follows: 8,300 equivalent units of direct material and 2,350 equivalent units of conversion activity.Required:Calculate the cost per equivalent unit, for both direct material and conversion, during November. Use weighted-average process costing. Cost per Equivalent Unit Direct material Conversion
Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals. The balance in the account Work in Process—Filling was as follows on January 1: Work in Process—Filling Department (4,000 units, 70% completed): Direct materials (4,000 x $12.50) $50,000 Conversion (4,000 x 70% x $8.10) 22,680 $72,680The following costs were charged to Work in Process—Filling during January: Direct materials transferred from Reaction Department: 51,600 units at $12.30 a unit $634,680Direct labor 215,540Factory overhead 207,080During January, 51,200 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 4,400 units, 30% completed. Required: Question Content Area1. Prepare a cost of production report for the…
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for October: All materials are added at the beginning of the process. Beginning work in process had 125,000 units, 40 percent complete with respect to conversion costs. Ending work in process had 25,000 units, 20 percent complete with respect to conversion costs. Started in process, 175,000 units. Required: Question Content Area 1. Prepare a physical flow schedule. 2. Compute equivalent units using the weighted average method. 3. Compute equivalent units using the FIFO method. 4. Suppose that the cost of direct materials in beginning work in process is $560,000 and that the direct materials cost incurred for October is…
Need some assistance please to see if I am on the right track. Thanks J & G Distilleries makes one of its products by way of three separate stages. Details of production for the month ending 31st January were as follows: Process Fermenting Distilling BottlingInput material: 65,000 litres $780,000 - -Material added - $89,000 -Direct Labour cost $114,600 $153,500 $225,600Manufacturing Overhead $122,000 $126,000 $193,100Normal losses 8% 5% 5%Output 55,000 litres 53,000 litres 48,000 litresScrap value of losses -…
Equivalent Units of Production The Converting Department of Comfy Touch Towel and Tissue Company had 1,120 units in work in process at the beginning of the period, which were 40% complete. During the period, 23,600 units were completed and transferred to the Packing Department. There were 1,240 units in process at the end of the period, which were 40% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount box does not require an entry, leave it blank. Comfy Touch Towel and Tissue CompanyNumber of Equivalent Units of Production WholeUnits DirectMaterialsEquivalentUnits ConversionEquivalentUnits Inventory in process, beginning fill in the blank 1 fill in the blank 2 fill in the blank 3 Started and completed fill in the blank 4 fill in the blank 5 fill in the blank 6 Transferred to Packing Department fill in the blank 7…