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Walter 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:
Work in process inventory (cracking department)balance, july 1 (35,000 ilbs, 4/5 done) $63,700Direct materials (280,000 lbs) $397,600Conversion costs $189,700balance, july 31 (45,000 lbs. 2/3 done) ???costs transferred to blending Dept ???The beginning balance inventory consists of $43,400 in materials cost. Brady 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?
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