Question 21 Prepare a raw material inventory card for Material A using FIFO and Weighted Average methods of inventory costing for the following...
Question 21
Prepare a raw material inventory card for Material A using FIFO and Weighted Average methods of inventory costing for the following transactions:
June 1Opening Balance 50 units @ $5.00
June 2 Purchases 40 units @ $4.50
June 3 Issues 70 units
June 4 Purchases 35 units @ $4.00
June 5 Issues 45 units
Prepare the journal entry necessary to charge the raw material issued to the production process.
NOTE: Use the inventory cards and blank General Journal extracts on the following page for your answer.
This page has been left blank for your answer to Question 2.
First In First Out (F.I.F.O.)
| Date | Received | Issued | Total | ||||||||
| Qty | Unit $ | Total | Qty | Unit $ | Total | Qty | Unit $ | Total | |||
General Journal
| Debit | Credit | ||
Weighted Average
| Date | Received | Issued | Total | ||||||||
| Qty | Unit $ | Total | Qty | Unit $ | Total | Qty | Unit $ | Total | |||
General Journal
| Debit | Credit | ||
1 Adapted from Question 1, page 200 of Davy, Colin & Bruce, Danny, Provide Management Accounting Information, 7th Edn.
