Cost of Materials Issuances Under the FIFO Method

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

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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	400	$5	$2,000
24	280	$7						May 4
				107	450			May 10
30	190	9						May 21
				120	270			May 27

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

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

blank	Accounts Payable / Cash / Factory Overhead / Finished Goods/ Materials / Work in Process	?	?
	Accounts Payable / Cash / Factory Overhead / Finished Goods/ Materials / Work in Process	?	?

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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.