Question

During May, the Casting Department was charged $633,600 for 6,600 pounds of alloy and $53,520 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 6,800 pounds of finished castings to the Machining Department. The May 31 inventory in process was 20% complete as to conversion. a1. Prepare the May journal entry for the Casting Department for the materials charged to production.

Answer 1

Answer:

Work - In - Process: Casting Department $633,600 (debit)

Material $633,600 (credit)

Explanation:

Accumulate the Materials cost in Casting Department Work - In - Process Account and de-recognise the Materials Account as a result of the requisition.

Journal to record Materials Charged to Casting Department

Work - In - Process: Casting Department $633,600 (debit)

Material $633,600 (credit)