FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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I also need help with this problem please. I am struggling to understand this material.
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 340 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 340 pounds was $53,448, determined as follows:
1
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Direct materials (340 × $150)
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$51,000.00
|
2
|
Conversion (340 × 60% × $12)
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2,448.00
|
3
|
|
$53,448.00
|
During May, the Casting Department was charged $379,200 for 2,400 pounds of alloy and $19,088 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,540 pounds of finished castings to the Machining Department. The May 31 inventory in process was 25% complete as to conversion.
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). |
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