Malcom Industries Manufactures a Silicone Paste Wax That Goes Through $\quad$

question 85

Essay

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 inventory account for the cracking department for July contains the following information:
$\quad$ $\quad$ $\quad$$\text { Work-in-Process Inventory (Cracking Department) }$
$\begin{array}{llr} \text { Work-in-Process Inventory (Cracking Department)} &\\ \text { Balance, July 1 ( \( 35,000 \mathrm{lbs}, 4 / 5 \) done)} &\$63,700\\ \text {Direct materials \( (280,000 \mathrm{lbs}) \) } &397,600\\ \text {Conversion costs } &189,700\\ \text { Balance, July 31 (45,000 1bs, 2/3 done)} &??\\ \text { Costs transferred to Blending Dept } &??\\\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's inventory balance on July 31?
(b) What would be the cost transferred to the Blending Dept. in July?

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Definitions:

Differentiation

In developmental psychology, differentiation refers to the process by which children or adolescents develop a sense of individuality, separating their identity from that of their parents or family.

Symbiotic Relationship

A close, interdependent relationship between two different organisms or entities, where both typically benefit from the association.

Multigenerational

Pertaining to or involving several generations, often used in the context of family therapy to understand patterns, dynamics, and influences that span across generations.

Psychopathology

Psychopathology is the study of psychological disorders, including their symptoms, etiology (causes), and treatment.