An incomplete subsidiary ledger of materials inventory for May is as follows RECEIVED ISSUED BALANCE Receiving Materials Report Unit Requisition Unit Number Quantity Price Number Quantity Amount Date Quantity Price Amount May 1 285 $30 00 $8,550 40 130 $32 00 May 4 91 365 May 10 44 110 38 00 May 21 97 100 May 27 Required A Complete the materials issuances and balances for the materials subsidiary ledger under FIFO B Determine the materials inventory balance at the end of May C Journalize the summary entry on May 31 to transfer materials to work in process Refer to the Chart of Accounts for exact wording of account titles D Explain how the materials ledger might be used as an aid in maintaining inventory quantities on hand Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Office Supplies Expense 540 Administrative Expenses 560 Depreciation Expense Factory 590 Miscellaneous Expense 710 Interest Expense Materials Inventory Shaded cells have feedback A Complete the materials issuances and balances for the materials subsidiary ledger under FIFO RECEIVED ISSUED BALANCE Receiving Materials Report Unit Requisition Number Quantity Price Number Quantity Amount Date Quantity Unit Price Amount May 1 285 $30 00 $8,550 40 130 $32 May 4 91 365 May 10 44 110 38 May 21 97 100 May 27 Points 12 20 B Determine the materials inventory balance at the end of May Points 0 1 Feedback Check My Work A and B Calculate the amount of each materials issue, using FIFO In the Balance section, separate each different unit price and its quantity Journal Shaded cells have feedback C Journalize the summary entry on May 31 to transfer materials to work in process Refer to the Chart of Accounts for exact wording of account titles How does grading work PAGE 10 JOURNAL C Increase work in process and decrease materials for the total of issuances found in Req A Final Question Shaded cells have feedback D Explain how the materials ledger might be used as an aid in maintaining inventory quantities on hand 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 time

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An incomplete subsidiary ledger of materials inventory for May is as follows: RECEIVED ISSUED BALANCE Receiving Materials Report Unit Requisition Unit Number Quantity Price Number

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

RECEIVED			ISSUED			BALANCE
Receiving			Materials
Report		Unit	Requisition					Unit
Number	Quantity	Price	Number	Quantity	Amount	Date	Quantity	Price	Amount
						May 1	285	$30.00	$8,550
40	130	$32.00				May 4
			91	365		May 10
44	110	38.00				May 21
			97	100		May 27

Required:

A.	Complete the materials issuances and balances for the materials subsidiary ledger under FIFO.
B.	Determine the materials inventory balance at the end of May.
C.	Journalize the summary entry on May 31 to transfer materials to work in process. Refer to the Chart of Accounts for exact wording of account titles.
D.	Explain how the materials ledger might be used as an aid in maintaining inventory quantities on hand.

Chart of Accounts

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
132	Work in Process
133	Factory Overhead
134	Finished Goods
141	Supplies
142	Prepaid Insurance
143	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
241	Lease Payable
251	Wages Payable
252	Consultant Fees Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Selling Expenses
532	Insurance Expense
533	Utilities Expense
534	Office Supplies Expense
540	Administrative Expenses
560	Depreciation Expense-Factory
590	Miscellaneous Expense
710	Interest Expense

Materials Inventory

Shaded cells have feedback.

A. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO.

RECEIVED			ISSUED			BALANCE
Receiving			Materials
Report		Unit	Requisition
Number	Quantity	Price	Number	Quantity	Amount	Date	Quantity	Unit Price	Amount
						May 1	285	$30.00	$8,550
40	130	$32				May 4

			91	365		May 10
44	110	38				May 21

			97	100		May 27

Points:

12 / 20

B. Determine the materials inventory balance at the end of May.

Points:

0 / 1

Feedback

Check My Work

A and B. Calculate the amount of each materials issue, using FIFO. In the Balance section, separate each different unit price and its quantity.

Journal

Shaded cells have feedback.

C. Journalize the summary entry on May 31 to transfer materials to work in process. Refer to the Chart of Accounts for exact wording of account titles.

How does grading work?

PAGE 10

JOURNAL

C. Increase work in process and decrease materials for the total of issuances found in Req. A.

Final Question

Shaded cells have feedback.

D. Explain how the materials ledger might be used as an aid in maintaining inventory quantities on hand.

Comparingquantities on hand as reported in the materials ledger with predetermined order points enables management to order materials beforea lack of materials causes idle time.