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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 1 340 $9 $3,060
23 240 $11 May 4
106 380 $ May 10
29 160 13 May 21
119 230 May 27

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a. Calculate the amount of each materials issue, using FIFO. In the Balance section, separate each different unit price and its quantity.

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

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b. Calculate the amount of each materials issue, using FIFO. In the Balance section, separate each different unit price and its quantity.

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

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c. Increase work in process and decrease materials for the total of issuances found in Req. a.

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 Report Number Quantity Unit
Price		 Materials Requisition Number Quantity Amount Date Quantity Unit
Price		 Amount
May 1 340 $             9 $       3,060
23 240 $              11 May 4 340 9 3060
240 11 2640
106 380 3500 May 10 200 11 2200
29 160 13 May 21 200 11 2200
160 13 2080
119 230 2590 May 27 130 13 1690

Working:

MRN 106: (340 x $9) + (40 x $11) = $3060 + $440 = $3500

MRN 119: (200 x $11) + (30 x $13) = $2200 + $390 = $2590

b. Materials inventory balance at the end of May: $1690

c.

Accounts Debit Credit
Work in process inventory ($3500 + $2590) 6090
Materials inventory 6090
(To record transfer of materials to work in process)

d. Provide options provided under the comments section to complete the requirement.

ekkarill92 answered 2 years ago
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