1. Materials Costing Methods. The Mellan Company began using a new raw material during May, 19-, with these transactions: May 2. Received 100 units @ $5.40 per unit; total cost, $540.00. 8. Received 30 units @ $8.00 per unit; total cost, $240.00. 15. Issued 50 units. 22. Received 120 units @ $9.00 per unit; total cost, $1,080,00. 29. Issued 100 units. Required: With a perpetual inventory control system in use, state the cost of materials consumed and the cost assigned to the inventory at the end of May using: (a) first-in, first-out costing; (b) last-in, first-out costing; and (c) average costing. Present computations using materials ledger cards.

1. Materials Costing Methods. The Mellan Company began using a new raw material during May, 19-, with these transactions: May 2. Received 100 units @ $5.40 per unit; total cost, $540.00. 8. Received 30 units @ $8.00 per unit; total cost, $240.00. 15. Issued 50 units. 22. Received 120 units @ $9.00 per unit; total cost, $1,080,00. 29. Issued 100 units. Required: With a perpetual inventory control system in use, state the cost of materials consumed and the cost assigned to the inventory at the end of May using: (a) first-in, first-out costing; (b) last-in, first-out costing; and (c) average costing. Present computations using materials ledger cards.

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Description: 1. Materials Costing Methods. The Mellan Company began using a new rawmaterial during May, 19-, with these transactions:May 2. Received 100 units @ $5.40 per unit; total cost, $540.00.8. Received 30 units @ $8.00 per unit; total cost, $240.00.15. Is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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