Malcom Industries Manufactures a Silicone Paste Wax That Goes Through

Malcom Industries manufactures a silicone paste wax that goes through three processing departments: cracking,blending,and packing.All raw materials are introduced at the start of work in the cracking department,with conversion costs being incurred uniformly in each department.The Work-in-Process T-account for the cracking department for July is:
$$\begin{array}{l}\text { Work-in-Process I wentoy (Cracking Department) }\\\begin{array} { | l | r | } \hline \text { Balance, Juby } 1 ( 36,000 \mathrm { lbs } , 4 / 5 \text { done) } & \$ 63,700 \\\hline \text { Direct materials ( } 280,000 \mathrm { lbs } ) & 397,600 \\\hline \text { Conversion costs } & 189,700 \\\hline \text { Balance, Juby } 31 \text { (45,000 lbs, } 23 \text { done) } & ? ? \\\hline \text { Costs transterred to Blending Dept } & ? ? \\\hline\end{array}\end{array}$$
The beginning balance inventory consists of $43,400 in materials cost.Malcom uses the first-in,first-out (FIFO)method to account for its operations.Required (use 4 decimal places for computations):
(a)What would be the Cracking Department inventory balance on July 31?
(b)What would be the cost transferred to the Blending Dept.in July?

Correct Answer:

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(a)$84,822
(b)$566,171
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