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	340	$9	$3,060
23	240	$11						May 4
				106	380	$		May 10
29	160	13						May 21
				119	230			May 27

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

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

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

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

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c. Increase work in process and decrease materials for the total of issuances found in Req. a.

d. Comparing as reported in the materials ledger with predetermined order points would enable management to order materials before a(n) causes idle time.