Question

Cost of Production and Journal Entries AccuBlade Castings Inc. casts blades for turbine engines. Within the...

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 May, the Casting Department was charged $699,600 for 6,600 pounds of alloy and $52,640 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 40% complete as to conversion.

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

  • Cash
  • Factory Overhead-Casting Department
  • Factory Overhead
  • Materials-Alloy
  • Work in Process-Casting Department
  • Work in Process-Machining Department
  • Cash
  • Factory Overhead
  • Materials-Alloy
  • Wages Payable
  • Work in Process-Casting Department
  • Work in Process-Machining Department

Feedback

a1. Remember there are three different areas of inventory; materials, work in process, and finished goods.

a2. Prepare the May journal entry for the Casting Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest whole dollar.

  • Cash
  • Factory Overhead
  • Finished Goods
  • Wages Expense
  • Work in Process-Casting Department
  • Work in Process-Machining Department
  • Accounts Receivable
  • Cash
  • Materials
  • Wages Payable
  • Work in Process-Casting Department
  • Work in Process-Machining Department
  • Accounts Payable
  • Cash
  • Factory Overhead
  • Finished Goods
  • Work in Process-Casting Department
  • Work in Process-Machining Department

Feedback

a2. Remember that a work in process account accumulates all costs (direct materials, direct labor, manufacturing overhead) that are added to the units in a given department. What types of costs are considered conversion costs?

a3. Prepare the May journal entry for the Casting Department for the completed production transferred to the Machining Department. Round all amounts to the nearest whole dollar.

  • Cash
  • Factory Overhead
  • Finished Goods
  • Materials
  • Work in Process-Casting Department
  • Work in Process-Machining Department
  • Cash
  • Factory Overhead
  • Finished Goods
  • Materials
  • Work in Process-Casting Department
  • Work in Process-Machining Department

Feedback

a3. Are these goods ready for finished goods inventory or do these units need to be transferred to another department first?

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

c. Compute the change in The rate used to allocate costs between completed and partially completed production.costs per equivalent unit for direct materials and conversion from the previous month (April).

Cost per Equivalent Unit
Change in materials
  • Decrease
  • Increase
$
Change in conversion
  • Decrease
  • Increase
$
0 0
Add a comment Improve this question
Answer #1
a1. Work in Process-Casting Department 699600
Materials-Alloy 699600
a2. Work in Process-Casting Department 131600
Wages Payable 52640
Factory Overhead (150% x $52640) 78960
a3. Work in Process-Machining Department 860020
Work in Process-Casting Department 860020

Working:

Equivalent Units
Physical Flow Direct Materials Conversion
Beginnning work in process 700
Started into production 6600
Total units to account for 7300
Beginning work in process completed 700 0 280
Started and completed 6100 6100 6100
Total units completed 6800 6100 6380
Ending work in process 500 500 200
Total units accounted for 7300 6600 6580
Direct Materials Conversion Total
Costs added during May 699600 131600 831200
÷ Equivalent units 6600 6580
Cost per equivalent unit $ 106 20 126
Cost of beginning work in process 77000 8820 85820
Cost of beginning work in process completed 0 5600 5600
Cost of units started and completed 646600 122000 768600
Total cost of units completed $ 723600 136420 860020
Cost of ending work in process $ 53000 4000 57000

b. Work in Process-Casting Department May 31 balance: $57000

c.

Cost per Equivalent Unit
Change in materials ($110 - $106) Decrease $             4.00
Change in conversion ($21 - $20) Decrease $             1.00
Add a comment
Know the answer?
Add Answer to:
Cost of Production and Journal Entries AccuBlade Castings Inc. casts blades for turbine engines. Within the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Cost of Production and Journal Entries AccuBlade Castings Inc. casts blades for turbine engines. Within the...

    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 Entries AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Depa...

    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...

    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 Depa...

    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...

  • 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...

  • 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 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...

  • Accounting

    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...

  • eBook Calculator Print tem Cost of production and journal entries Instructions Chart of Accounts Journal Final...

    eBook Calculator Print tem Cost of production and journal entries Instructions Chart of Accounts Journal Final Question Instructions AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, aloy is first melted in a crucible, then poured into molds to produce the castings. On May 1, there were 340 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 340 pounds was 553,448, determined as follows: $51,000.00 Direct materials...

  • Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by...

    Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31: ACCOUNT Work in Process-Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit July 1 Bal., 5,100 units, 2/5 completed 12,138 31 Direct materials, 229,500 units 504,900...

  • rolling department of keystone steel company Calculator BShow Me How eBook Process Cost Journal Entries The cost o...

    rolling department of keystone steel company Calculator BShow Me How eBook Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel Company is $557,300 from the Casting Department. The conversion cost for the period in the Rolling Department is $115,000 ($66,700 factry overhead applied and $48,300 direct labor). The total cost transferred to Finished Goods for the period was $661,700. The Rolling Department had a beginning imventory of $29,900 a1. Journalize the cost of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT