Inventory costing methods The following transactions affecting materials occurred in Fe...

Inventory costing methods

The following transactions affecting materials occurred in February:

Feb. 1 Balance on hand, 1,200 ft @ $2.76, $3,312.00 (plastic tubing, materials ledger account #906).

5 Issued 60 ft to production on Materials Requisition No. 108.

11 Issued 200 ft on Materials Requisition No. 210.

14 Received 800 ft froma supplier, Receiving Report No. 634, price $2.80 per ft.

15 Issued 400 ft, Materials Requisition No. 274.

16 Returned to a supplier for credit, 90 ft purchased on February 14, which were found to be defective.

18 Received 1,000 ft, Receiving Report No. 712, price $2.83 per ft.

21 Issued 640 ft, Materials Requisition No. 318.

Required:

Record the transactions in materials ledger accounts similar to Figure 2-10. (The “On Order” columns should be omitted.) Use the following inventory methods, assuming the use of a perpetual inventory system. Carry unit prices to four decimal places.

1. FIFO

2. LIFO

3. Moving average

Reference: