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:
The beginning balance inventory consists of $43,400 in materials cost.Malcom uses the weighted-average 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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(b)$567,000
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