Cost of Materials Issuances Under the FIFO Method An incomplete subsidiary ledge
ID: 2565475 • 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
Quantity
Unit
Price
Materials
Requisition
Number
Quantity
Amount
Date
Quantity
Unit
price
Amount
May 1
200
$6
$1,200
24
140
$8
May 4
200
6
1,200
140
8
1,120
106
230
$1,440
May 10
8
30
90
10
May 21
8
90
10
900
119
130
1,080
May 27
10
b. Determine the materials inventory balance at the end of May.
$
Received
Issued
Balance
Receiving
Report
Number
Quantity
Unit
Price
Materials
Requisition
Number
Quantity
Amount
Date
Quantity
Unit
price
Amount
May 1
200
$6
$1,200
24
140
$8
May 4
200
6
1,200
140
8
1,120
106
230
$1,440
May 10
8
30
90
10
May 21
8
90
10
900
119
130
1,080
May 27
10
Explanation / Answer
the materials inventory balance at the end of May = $700
As it is FIFO , Always after a sale , the inventory that is remaining will be of the LATEST PURCHASE.
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Received Issued Balance Receiving Quantity Unit Materials Quantity Amount Date Quantity Unit Amount Report Price Requisition price Number Number 1-May 200 $6 $1,200 24 140 $8 4-May 200 6 1,200 140 8 1,120 106 230 $1,440 10-May 110 8 880 30 90 10 21-May 110 8 880 90 10 900 119 130 1,080 27-May 70 10 700