Question

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 900 pounds of alloy in process, which were 40% complete as to conversion. The Work in Process balance for these 900 pounds was $102,960, determined as follows:
Direct materials (900 x $110) $99,000
Conversion (900 x 40% x $11) 3,960
$102,960

During May, the Casting Department was charged $901,000 for 8,500 pounds of alloy and $33,920 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 8,700 pounds of finished castings to the Machining Department. The May 31 inventory in process was 20% complete as to conversion.

a. Prepare the following May journal entries for the Casting Department:
1. The materials charged to production
2. The conversion costs charged to production
3. The completed production transferred to the Machining Department

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).

Answer 1

Answer:

Explanation:

Base on the been described in the question, we can use the following method in the image attached file below