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	200	$8	$1,600
22	140	$10						May 4
				101	230	$		May 10
28	90	12						May 21
				114	130			May 27

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

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c. Journalize the summary entry to transfer materials to work in process.

	Work in Process
	Materials

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