Reagan Products 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 lbs. 80% complete) $63,700
- Direct Materials (280,000 lbs.) 397,600
- Conversion Costs 189,700
- Balance, July 1 (45,000 lbs. 66.7% complete) ?
- Costs Transferred to Blending Dept. ?
The beginning balance inventory consists of $43,400 in materials cost. Reagan uses the first-in, first-out (FIFO) method to account for its operations.
Required: (Round to 4 decimal places when computing)
(a) Compute the Cracking Department inventory balance on July 31?
(b) Compute the cost transferred to the Blending Dept. in July?