Question

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	220	$6	$1,320
27	150	$8						May 4
				108	250	$		May 10
33	100	10						May 21
				121	150			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.

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

Answer 1

a.

Received				Issued				Balance
Receiving	Quantity	Unit		Materials	Quantity	Amount		Date	Quantity	Unit	Amount
Report		Price		Requisition						price
Number				Number
								May-01	220	$         6	$     1,320
27	150	$                8						May-04	220	$         6	$     1,320
									150	$         8	$     1,200
				108	250	$                   1,560		May-10	120	$         8	$       960
33	100	$              10						May-21	120	$         8	$       960
									100	$       10	$     1,000
				121	150	$                   1,260		May-27	70	$       10	$       700

b. Materials inventory balance = $700

c.

Account Titles	Debit	Credit
Work in process	$                        2,820
Raw Material Inventory		$              2,820

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