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

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?