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.
(1) On May 1, prepare the journal entry for the Casting Department for the materials charged to production.*
(2) On May 31, prepare the journal entry for the Casting Department for the conversion costs charged to production.*
(3) On May 31, prepare the journal entry for the Casting Department for the completed production transferred to the Machining Department.*
* Refer to the Chart of Accounts for exact wording of account titles.
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
AccuBlade Castings Inc.
General Ledger
ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials-Alloy
132 Materials-Steel
141 Work in Process-Casting Department
142 Work in Process-Machining Department
151 Factory Overhead-Casting Department
152 Factory Overhead-Machining Department
161 Finished Goods
171 Supplies
172 Prepaid Insurance
173 Prepaid Expenses
181 Land
191 Factory
192 Accumulated Depreciation-Factory
LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
251 Wages Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Selling Expenses
532 Insurance Expense
533 Utilities Expense
534 Supplies Expense
540 Administrative Expenses
561 Depreciation Expense-Factory
590 Miscellaneous Expense
710 Interest Expense