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	The form or electronic transmission used by a manufacturing department to authorize materials issuances from the storeroom.Materials Requisition Number	Quantity	Amount	Date	Quantity	Unit price	Amount
						May 1	340	$5	$1,700
25	240	$7				May 4

			103	380	$	May 10
31	160	9				May 21

			116	230		May 27

Feedback

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.
$

Feedback

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.

	Work in Process Accounts Payable Cash Factory Overhead Finished Goods Materials Work in Process
	Materials Accounts Payable Cash Factory Overhead Finished Goods Materials Work in Process

Solutions

Expert Solution

Received			Issued			Balance
Receiving Report Number	Quantity	Unit Price	Requisition Number	Quantity	Amount	Date	Quantity	Unit Price	Amount
						May-01	340	$ 5	$ 1,700
25	240	$ 7				May-04	340	$ 5	$ 1,700
							240	$ 7	$ 1,680
			103	380	$ 1,980	May-10	200	$ 7	$ 1,400
31	160	$ 9				May-21	200	$ 7	$ 1,400
							160	$ 9	$ 1,440
			116	230	$ 1,670	May-27	130	$ 9	$ 1,170

Working:

Requisition number 103: $1700 + (40 x $7) = $1700 + $280 = $1980

Requisition number 116: $1400 + (30 x $9) = $1400 + $270 = $1670

b. Materials inventory balance at the end of May: $1,170

Work in process ($1980 + $1670)	3650
Materials		3650

ekkarill92 answered 1 year ago

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