Malcom Industries Manufactures a Silicone Paste Wax That Goes Through

question 109

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 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):
$$\begin{array}{l}\text { Work-in-Process I wentoy (Cracking Department) }\\\begin{array} { | l | r | } \hline \text { Balance, Juby } 1 ( 36,000 \mathrm { lbs } , 4 / 5 \text { done) } & \$ 63,700 \\\hline \text { Direct materials ( } 280,000 \mathrm { lbs } ) & 397,600 \\\hline \text { Conversion costs } & 189,700 \\\hline \text { Balance, Juby } 31 \text { (45,000 lbs, } 23 \text { done) } & ? ? \\\hline \text { Costs transterred to Blending Dept } & ? ? \\\hline\end{array}\end{array}$$
(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?

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Definitions:

Managers

Individuals in an organization responsible for directing the efforts of others and overseeing business operations to achieve certain goals.

Absentee Owners

Absentee owners are individuals or entities that own a business or property but do not actively manage it or live on its premises.

Moral Hazard

A situation where the behavior of an individual or entity changes to take on more risk because they do not bear the full consequences of that risk.

Flood Control System

An infrastructure or set of measures designed to manage the water level in a given area to prevent flooding.