Question

During August, the receipts and distributions of Material No. B4G9 are as follows: Received Aug. 31,100 units at $15 161,700 units at $17 29 900 units at $18 Issued Aug. 11 700 units for Job 116 181,900 units for Job 117 30 800 units for Job 118 a. Determine the cost of each of the three issues under a perpetual system, using the first-in, first-out method.

Answer 1

Answer:

The total cost will be "$56,200". A further explanation is provided below.

Explanation:

According to the question,

The cost of issue of Aug 11 will be:

= $700\times 15$

= $10,500$ ($)

The cost of issue of Aug 18 will be:

= $400\times 15+1500\times 17$

= $6000 +25500$

= $31,500$ ($)

The cost of issue of Aug 30 will be:

= $200\times 17+600\times 18$

= $3400+10800$

= $14,200$ ($)

Now,

The total cost will be:

= $10,500+31,500+14,200$

= $56,200$ ($)