The raw material inventory records card for material X shows the following data: On May 2, 2020, the opening inventory was 600 units, with a total value of K648,000 RECEIPTS Date Quantity Unit (units) Price May 8th 1000 2000 May 12th 800 1360 May 18th 1400 2940 May 31st 800 1600 ISSUES: Date Quantity (units) May 9th 1100 May 16th 900 May 23rd 700 Additional Information • The issues on May 9th and 16th were issued to production department, while the issue on May 23, were for maintenance department. • The following cost account codes are used to record inventory costs. Code Description 6 200 Store control account 6 400 work in progress 6 600 payables control account 6 800 production overhead control account Required (a) Prepare stores ledger records including the closing inventory balance and inventory valuation using First-in-First out method. (b) Show the Journal entries required o record May 9, 12 and 23 transactions.
The raw material inventory records card for material X shows the following data: On May 2, 2020, the opening inventory was 600 units, with a total value of K648,000 RECEIPTS Date Quantity Unit (units) Price May 8th 1000 2000 May 12th 800 1360 May 18th 1400 2940 May 31st 800 1600 ISSUES: Date Quantity (units) May 9th 1100 May 16th 900 May 23rd 700 Additional Information • The issues on May 9th and 16th were issued to production department, while the issue on May 23, were for maintenance department. • The following cost account codes are used to record inventory costs. Code Description 6 200 Store control account 6 400 work in progress 6 600 payables control account 6 800 production overhead control account Required (a) Prepare stores ledger records including the closing inventory balance and inventory valuation using First-in-First out method. (b) Show the Journal entries required o record May 9, 12 and 23 transactions.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The raw material inventory records card for material X shows the following data: On May 2,
2020, the opening inventory was 600 units, with a total value of K648,000
RECEIPTS
Date
Quantity
Unit
(units)
Price
May 8th
1000
2000
May 12th
800
1360
May 18th
1400
2940
May 31st
800
1600
ISSUES:
Date
Quantity
(units)
May 9th
1100
May 16th
900
May 23rd
700
Additional Information
• The issues on May 9th and 16th were issued to production department, while the issue
on May 23, were for maintenance department.
• The following cost account codes are used to record inventory costs.
Code
Description
6 200
Store control account
6 400
work in progress
6 600
payables control account
6 800
production overhead control account
Required
(a) Prepare stores ledger records including the closing inventory balance and inventory
valuation using First-in-First out method.
(b) Show the Journal entries required o record May 9, 12 and 23 transactions.
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