Cost of Production and Journal Entries

AccuBlade Castings Inc. casts blades for turbine engines. Withinthe Casting Department, alloy is first melted in a crucible, thenpoured into molds to produce the castings. On May 1, there were 500pounds of alloy in process, which were 40% complete as toconversion. The Work in Process balance for these 500 pounds was$44,200, determined as follows:

Direct materials (500 x $80)	$40,000
Conversion (500 x 40% x $21)	4,200
	$44,200

During May, the Casting Department was charged $357,200 for4,700 pounds of alloy and $38,080 for direct labor. Factoryoverhead is applied to the department at a rate of 150% of directlabor. The department transferred out 4,900 pounds of finishedcastings to the Machining Department. The May 31 inventory inprocess was 20% complete as to conversion.

a1. Prepare the May journal entry for theCasting Department for the materials charged to production.

a2. Prepare the May journal entry for theCasting 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 theCasting Department for the completed production transferred to theMachining Department.

b. Determine the Work in Process—CastingDepartment May 31 balance.
$

c. Compute the change in the costs perequivalent unit for direct materials and conversion from theprevious month (April).

	Cost per Equivalent Unit
Change in materials		$
Change in conversion