P$2-6$ Inventory Costing Methods

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LO$3$

The following transactions affecting materials occurred in February:

Feb. $1$ Balance on hand, $1,200$ ft @ $$2\mathrm{.}76,$ $$3,312\mathrm{.}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 from a supplier, Receiving Report No$.634,$ price $$2\mathrm{.}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\mathrm{.}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.

FIFO

LIFO

Weighted averageWeighted average method