15

Cost of Materials Issuances An incomplete subsidiary ledger of wire cable for July is as follows: a. Complete the materials issuances and balances for the wire cable subsidiary ledger. Apply a FIFO inventory flow assumption Received Issued Balance Receiving Report Number Materials Requisition Number Quantity Unit Price Quantity Amount Date Quantity Amount Unit Price $2,310 230 July 5 107 370 July 10 July 20 160 120 220 July 26 b. Determine the balance of wire cable at the end of July c. Determine the total amount of materials transferred to work in Process for July d. All of the following statements about a materials ledger are true except: July 26 A materials ledger is a subsidiary ledger. A materials ledger contains the individual accounts for each type of material. Comparing quantities on hand as reported in the materials ledger with predetermined order points enables management to order materials before a lack of materials causes idle A materials ledger cannot assist management with information about materials on order