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P2-5 Inventory costing methods The purchases and issues of rubber gaskets (Materials Ledger #11216) as shown in the records of GT Corp. for November follow: LO3 Units 30,000 10,000 30,000 50,000 20,000 25,000 30,000 Unit Price $3.00 3.10 Nov.1 Beginning balance 4 Received, Rec. Report No. 112 5 Issued, Mat. Req. No. 4 3.30 8 Received, Rec. Report No. 113 Issued, Mat. Req. No. 50 15 22 28 Received, Rec. Report No. 114 3.50 Issued, Mat. Req. No. 51 Required: 1. Complete a materials ledger account similar to Figure 2-10 (the On Order" columns should be omitted) for each of the following inventory costing methods, using a perpetual inventory system: a. FIFO b. LIFO c. Moving average (carrying unit prices to five decimal places) 2. For each method, prepare a schedule that shows the total cost of materials transferred to Work in Process and the cost of the ending inventory. FIFO or the LIFO method? Explain. sus LIFO on the inventory balance for materials reported in 3 If prices continue to increase, would you favor adopting the 4. When prices continue to rise, what is the effect of FIFO ver- the balance sheet? Discuss