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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 360 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 360 pounds was $55,800, determined as follows:

1 Direct materials (360 $146) $52,560.00

2 Conversion (360 60% $15) 3,240.00

(Total)$55,800.00

During May, the Casting Department was charged $462,000 for 3,000 pounds of alloy and $24,982 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 3,160 pounds of finished castings to the Machining Department. The May 31 inventory in process was 15% complete as to conversion. Required: 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)

CHART OF ACCOUNTS

AccuBlade Castings Inc.

General Ledger

ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials-Alloy 132 Materials-Steel 141 Work in Process-Casting Department 142 Work in Process-Machining Department 151 Factory Overhead-Casting Department 152 Factory Overhead-Machining Department 161 Finished Goods 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary

A(1). On May 1, prepare the journal entry for the Casting Department for the materials charged to production.Refer to the Chart of Accounts for exact wording of account titles. Question not attempted PAGE 10 JOURNAL Score: 0/25 DATE DESCRIPTION POST. REF DEBIT CREDIT Points:0/5 A(2). On May 31, prepare the journal entry for the Casting Department for the conversion costs charged to production. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. PAGE 10 JOURNAL Score: 0/37 DATE DESCRIPTION POST. REF DEBIT CREDIT

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