Question 2

Power Potables brews a special low-calorie craft beer that requires processing in six

different departments. The first two departments are malting and mashing. In the

malting department, the barley grain is prepared for brewing by going through a soaking

and drying process. The malt from the malting department is then transferred to the

mashing department, where the starch from the malt is converted into sugars that can

be fermented in a later process. Conversion costs are assumed to be added

continuously throughout all departments.

Summary data for malting department (October 2020)

Direct materials, added at the beginning of the process 160,000 kg

Direct materials cost $ 185,000

Conversion costs incurred during October $ 80,000

Work-in-process, Oct. 1: 2,000 kg, 90% complete:

Direct materials cost $ 1,400

Conversion cost $ 600

Work-in-process, Oct. 31: 3,000 kg, 50% complete.

Required:

Calculate the cost of goods transferred out of the malting department to the mashing

department during October and the cost of the malting department work-in-process

inventory at Oct. 31, assuming that Power uses (a) weighted average and (b) first in,

first out (FIFO). (Round all unit costs to four decimals.)