AcuBlade 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 40% complete as to conversion. The Work in Process balance for these 900 pounds was $102,960, determined as follows:

Direct materials (900 x $110) $99,000
Conversion (900 x 40% x $11) 3,960
$102,960

During May, the Casting Department was charged $901,000 for 8,500 pounds of alloy and $33,920 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 8,700 pounds of finished castings to the Machining Department. The May 31 inventory in process was 20% complete as to conversion.

Determine the Work in Process-Casting Department May 31 balance.

We only need to find the Ending Work in Process Inventory which is 700 pounds complete for materials and 20 % complete as to conversion. which means it has 700 pounds of materials and 140 pounds were worked on .

Equivalent Units Of Production

Particulars Units % of Completion Equivalent Units

Materials Conversion Materials Conversion

Transferred Out 8700 100 100 8700 8700

Work In Process

Ending Inventory 700 100 20 700 140

Equivalent Units 9400 8840

Costs Materials Conversion

Opening Inventory 99000 3960

Units Started 901,000 (33,920 + 50880) = $ 84800

Total Costs 1000,000 88760

Equivalent Units 9400 8840

Cost/ Unit $ 106.38 $10.04

Cost Of Ending Inventory $ 75,873.69

Materials = $ 106.38* 700= $ 74468.09

Conversion = $ 10.04 * 140= 1405.6