Evaluate materials costing methods


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.

1. Received 30 units @ $8.00 per unit; total cost, $240.00.

2. Issued 50 units.

3. Received 120 units @ $9.00 per unit; total cost, $1,080.00.

4. 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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Accounting Basics: Evaluate materials costing methods
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