During June, the receipts and issuances of Material No. A2FO are as follows: Rec

Question

During June, the receipts and issuances of Material No. A2FO are as follows:

Received June 3 Balance 1,100 units at $15        16 1,700 units at $17        29 900 units at $18 Issued June 11 700 units for Job No. 116         18 1,900 units for Job No. 117         30 800 units for Job No. 118
(a) Determine the cost of each of the three issues under a perpetual system, using the first-in, first-out method. (b) Present the journal entry to record the issuance of the materials for the month, assuming that the cost of issuances is determined by the first-in, first-out method. Received Balance 1,100 units at $15 1,700 units at $17 900 units at $18 Issued 700 units for Job No. 116 1,900 units for Job No. 117 800 units for Job No. 118 Received June 3 Balance 1,100 units at $15        16 1,700 units at $17        29 900 units at $18 Issued June 11 700 units for Job No. 116         18 1,900 units for Job No. 117         30 800 units for Job No. 118

Explanation / Answer

Hi,

Please find the answer as follows;

Part A:

June 11 = 700*15 = 10500

June 18 = 400*15 + 1500*17 = 31500

June 31 = 200*17 + 600*18 = 14200

Total Cost of each of the three issues under a perpetual system = 10500 + 31500 + 14200 = 56200

Part B:

Work in Process Dr. 56200

Materials Cr. 56200

Thanks.

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