Describe ledger accounts for materials


Ledger Accounts for Materials Cost Flow. The Littner Company produces a product from one basic raw material. During one week of operations, the materials ledger card reflected the following transactions:

1st weekday
2d "

Beginning balance: 1,400 pounds @ $4.60 per lb. Received 1,000 pounds @ $4.80 per lb.

Issued 800 pounds. Issued 800 pounds.

Received 1,200 pounds @ $5.00 per lb.

Issued 800 pounds.

Other costs for the week were direct labor, $4,800, and factory overhead, $4,360; 1,700 units of product were completed, and 1,500 were sold. There was no beginning inventory of finished goods, and no work is left in process over the weekend.


(1) Ledger accounts for Materials, Work in Process, Finished Goods, and Cost of Goods Sold, using (a) fifo costing and (b) lifo costing. As- sume a perpetual inventory system is used.

(2) The final inventory by the lifo costing method if inventory is taken at the end of the week and if day-to-day receipts and issues are ignored.

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Accounting Basics: Describe ledger accounts for materials
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