Airfoil 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 March 1, there were 190 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 190 pounds was $25,536, determined as follows:

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 Process€”Casting 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).

Transcribed Image Text:

Direct materials (190 × $120) Conversion (190 × 60% × $24) $22,800 2,736 $25,536