Cost of Materials Issuances Under the FIFO Method An incomplete subsidiary ledge
ID: 2333227 • Letter: C
Question
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 Materials Unit Price Unit Quantity Requisition Quantity Amount Date Quantity Amount price Number May 1 285 $30.00 $8,550 40 130 $32.00 May 4 91 365 May 10 110 38.00 May 21 97 100 May 27 b. Determine the materials inventory balance at the end of May c. Journaize the summary entry to transfer materials to work in process. d. Comparing as reported in the materials ledger with predetermined order points would enable management to order materials before a(n) causes idle timeExplanation / Answer
FIFO Method: (a) Received Issued Balance Receiving report no Quantity Unit price Material recognition number Quantity Amount Date Quantity Unit price Amount May-01 285 $ 30.00 $ 8,550 40 130 $ 32.00 May-04 285 $ 30.00 $ 8,550 130 $ 32.00 $ 4,160 91 365 $ 11,110 May-10 50 $ 32.00 $ 1,600 44 110 $ 38.00 May-21 50 $ 32.00 $ 1,600 110 $ 38.00 $ 4,180 97 100 $ 3,500 May-27 60 $ 38.00 $ 2,280 Workings: FIFO Method: Received Issued Balance Receiving report no Quantity Unit price Material recognition number Quantity Amount Date Quantity Unit price Amount May-01 285 $ 30.00 $ 8,550 40 130 $ 32.00 May-04 285 $ 30.00 $ 8,550 130 $ 32.00 $ 4,160 91 285 $ 8,550 May-10 50 $ 32.00 $ 1,600 80 $ 2,560 44 110 $ 38.00 May-21 50 $ 32.00 $ 1,600 110 $ 38.00 $ 4,180 97 50 $ 1,600 May-27 60 $ 38.00 $ 2,280 50 $ 1,900 (b) Material Inventory balance at the end of May = $2,280 (c) Work in process inventory $ 14,610 Raw material inventory $ 14,610 (Being material transferred to work in process) (Material issued = $8,550+ $2,560 + $1,600 + $1,900) (d) Comparing Quatities on hand as reported in the material ledger with the predetremined order ledger will enable the management to order material before a lack of material cause idle time