Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 44

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.
b. 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.