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 WorkinProcess WIP inventory account for the cracking department for
July contains the following information: points
WorkinProcess Inventory Cracking Department
Balance, July pounds, done
Direct materials pounds
$
Conversion costs
Balance, July pounds, done
Costs transferred to Blending Department
The beginning balance inventory consists of $ in materials cost. Malcom uses the first
in firstout FIFO method to account for its operations.
Required:Note: Use decimal places for computations.
a What would be the Cracking Department's inventory balance on July
b What would be the cost transferred to the Blending Department in July?
