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Cost of Materials Issuances Under the FIFO Method An incomplete subsidiary ledger of materials inventory for...

Cost of Materials Issuances Under the FIFO Method

An incomplete subsidiary ledger of materials inventory for May is as follows:

a. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO.

Received Issued Balance
Receiving
Report
Number		 Quantity Unit
Price		 Materials
Requisition
Number		 Quantity Amount Date Quantity Unit
price		 Amount
May 1 210 $6 $1,260
21 150 $8 May 4
105 240 $ May 10
27 100 10 May 21
118 140 May 27

b. Determine the materials inventory balance at the end of May.
$

c. Journalize the summary entry to transfer materials to work in process. If an amount box does not require an entry, leave it blank.

d. Comparing   as reported in the materials ledger with predetermined order points would enable management to order materials before a(n)   causes idle time.

Solutions

Expert Solution

a)

Received Issued Balance
Receiving Quantity Unit Materials Quantity Amount Date Quantity Unit Amount
Report Price Requisition price
Number Number
May-01 210 6 1260
21 150 8 May-04 210 6 1260
150 8 1200
360 2460
105     210.00        6.00 1,260.00 May-10 120 8 960
     30.00        8.00     240.00
    240.00 1,500.00
27 100 10 May-21 120 8 960
100 10 1000
118     120.00        8.00     960.00 May-27 80 10 800
     20.00      10.00     200.00

b. 80 Units , Amount - 800

c.

Work in Process    2,660.00
Materials    2,660.00

d.Managers should know the balance of inventory so that they know when to order more inventory to avoid stockouts

ekkarill92 answered 2 years ago
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