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 (230x$132) 30,360.00
Conversion (230x60%x$18) 2,484.00
$32,844.00
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.
Required:
A. |
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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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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A) JOURNAL ENTRIES: | ||||
May 1: | ||||
Work in Process-Casting Department | 350000 | |||
Materials-Alloy | 35000 | |||
May 31: | ||||
Work in Process-Casting Department | 49600 | |||
Wages payable | 19840 | |||
Factory overhead-Casting Department | 29760 | |||
May 31: | ||||
Work in Process-Machining Department | 402684 | |||
Work in Process-Casting Department | 402684 | |||
B) | ||||
Ending WIP | 200 | 28000 | 1760 | 29760 |
C) Cost per equivalent unit: | ||||
for May | 140 | 20 | ||
for April | 132 | 18 | ||
Change | 8 | 2 | ||
Increase | Increase |
Calculations:
Units to be accounted for: | Pounds | |||
beginning WIP | 230 | |||
introduced during the month | 2500 | |||
Total units to be accounted for | 2730 | |||
Units accounted for: | Equivalent units | |||
Materials | Conversion | |||
beginning WIP completed | 230 | 0 | 92 | |
introduced and completed | 2300 | 2300 | 2300 | |
completed and transferred | 2530 | 2300 | 2392 | |
ending WIP | 200 | 200 | 88 | |
Total units accounted for | 2730 | 2500 | 2480 | |
Costs to be accounted for: | Materials | Conversion | Total | |
beginning WIP | 30360 | 2484 | 32844 | |
Costs added during the period | 350000 | 49600 | 399600 | |
Total costs to be accounted for | 380360 | 52084 | 432444 | |
Cost per equivalent unit: | 140 | 20 | ||
Costs accounted for: | ||||
beginning WIP | 230 | 30360 | 2484 | 32844 |
costs of completion | 0 | 1840 | 1840 | |
Cost of beginning WIP transferred out | 230 | 30360 | 4324 | 34684 |
Introduced and transferred out | 2300 | 322000 | 46000 | 368000 |
Cost of units transferred out | 2530 | 352360 | 50324 | 402684 |
Ending WIP | 200 | 28000 | 1760 | 29760 |
Costs accounted for | 2730 | 380360 | 52084 | 432444 |
AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted...
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 1,000 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 1,000 pounds was $93,600, determined as follows: Direct materials (1,000 x $90) $90,000 Conversion (1,000 x 60% x $6) 3,600 $93,600 During May, the Casting Department was charged...
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 700 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 700 pounds was $85,820, determined as follows: Direct materials (700 x $110) $77,000 Conversion (700 x 60% x $21) 8,820 $85,820 During...
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 1,200 pounds of alloy in process, which were 70% complete as to conversion. The Work in Process balance for these 1,200 pounds was $133,440, determined as follows: Direct materials (1,200 x $100) $120,000 Conversion (1,200 x 70% x $16) 13,440 $133,440 During...
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 800 pounds of alloy in process, which were 30% complete as to conversion. The Work in Process balance for these 800 pounds was $75,840, determined as follows: Direct materials (800 x $90) $72,000 Conversion (800 x 30% x $16) 3,840 $75,840 During...
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 900 pounds of alloy in process, which were 70% complete as to conversion. The Work in Process balance for these 900 pounds was $120,780, determined as follows: Direct materials (900 x $130) $117,000 Conversion (900 x 70% x $6) 3,780 $120,780 During...
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 1,100 pounds of alloy in process, which were 70% complete as to conversion. The Work in Process balance for these 1,100 pounds was $115,170, determined as follows: Direct materials (1,100 x $90) $99,000 Conversion (1,100 x 70% x $21) 16,170 $115,170 During...
Cost of Production and Journal EntriesAccuBlade 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 1,100 pounds of alloy in process, which were 70% complete as to conversion. The Work in Process balance for these 1,100 pounds was $115,170, determined as follows:Direct materials (1,100 x $90)$99,000Conversion (1,100 x 70% x $21)16,170$115,170During May, the Casting Department was charged $885,800...
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