# Cost of materials issuances under the FIFO method An incomplete subsidiary ledger of materials inventory for May is as follow: a. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO. h. Determine the materials inventory balance at the end of May. c. Journalize the summary entry to transfer materials to work in process. d. Explain how the materials ledger might be used as an aid in maintaining inventory quantities on hand.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 19, Problem 19.2EX
Textbook Problem

## Cost of materials issuances under the FIFO methodAn incomplete subsidiary ledger of materials inventory for May is as follow:a. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO.h. Determine the materials inventory balance at the end of May.c. Journalize the summary entry to transfer materials to work in process.d. Explain how the materials ledger might be used as an aid in maintaining inventory quantities on hand.

Expert Solution

(a)

To determine

Issuance of materials

The material storeroom releases raw materials for used in manufacturing process when a material requisition is received. The summary of material requisition aids as a basis for recording materials used in the process.

To prepare: the subsidiary ledger under FIFO for material issuance and balances.

### Explanation of Solution

Table (1)

Working note:

The May 10th issuance (FIFO) is calculated as follows:

 Units Rate ($) Amount ($) 285 30 8,550 80 32 2,560
Expert Solution

(b)

To determine
material inventory balance at the end of May.

Expert Solution

(c)

To determine

To record: Journal entry for issuance of materials.

Expert Solution

(d)

To determine

To explain: the use of material ledger in maintaining inventory quantities on hand.

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