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.
Chapter1: Financial Statements And Business Decisions
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
Transcribed Image Text: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.
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.
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.
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.
b. Determine the Work in Process-Casting Department
May 31 balance.
$
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