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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		 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

a.

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

c.

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

ekkarill92 answered 1 year ago
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