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

ReceivingReportNumber Quantity UnitPrice MaterialsRequisitionNumber Quantity Amount Date Quantity Unitprice Amount

May1 280 $8 $2,240

23 200 $10 May4 ? ? ?

? ? ?

107 320 $? May 10 ? ? ?

29 130 12 May 21 ? ? ?

? ? ?

120 190 $? May 27 ? ? ?

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

$?

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

Work in Process $? $?

Materials $? $?

• d.Comparing________________ ( quantities on hand/materials cost) as reported in the materials ledger with predetermined order points would enable management to order materials before a(n)______________( lack of materials/excess of materials) causes idle time.