Airfoil Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in
Question:
During March, the Casting Department was charged $237,500 for 1,900 pounds of alloy and $19,480 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,040 pounds of finished castings to the Machining Department. The March 31 inventory in process was 44% complete as to conversion.
a. Prepare the following March 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 ProcessCasting Department March 31 balance.
c. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (February).
Step by Step Answer:
Financial and Managerial Accounting Using Excel for Success
ISBN: 978-1111993979
1st edition
Authors: James Reeve, Carl S. Warren, Jonathan Duchac