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

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Accounting

Cost of Materials Issuances Under the FIFO Method

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

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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 1 400 $5 $2,000
24 280 $7 May 4
107 450 May 10
30 190 9 May 21
120 270 May 27

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

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

blank Accounts Payable / Cash / Factory Overhead / Finished Goods/ Materials / Work in Process ? ?
Accounts Payable / Cash / Factory Overhead / Finished Goods/ Materials / Work in Process ? ?

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d. Comparing quantities on hand / materials cost as reported in the materials ledger with predetermined order points would enable management to order materials before a(n) lack of materials / excess of materials causes idle time.

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