The following statement shows a note of information relating to materials inventory during the month of May. Prepare the materials inventory control account in the general ledger.
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£ |
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|
1 May |
Purchased direct materials on credit, for various jobs: |
|
|
Job 901 |
1,300 |
|
|
Job 902 |
1,100 |
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|
Job 903 |
900 |
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|
2 May |
Returned materials which failed quality inspection |
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|
Job 901 |
200 |
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|
Job 902 |
300 |
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|
5 May |
Paid cash for indirect materials to be used during May and June |
4,200 |
|
31 May |
Job records for May showed the following information: |
|
|
Job 901 All materials transferred to work in progress (1,300 –200) |
1,100 |
|
|
Job 902 Start of work delayed. 75% of materials transferred to |
600 |
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work in progress 75% of (1,100 – 300) |
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|
Job 903 Start of work delayed. 50% of materials transferred to |
450 |
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work in progress 50% of 900 |
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|
31 May |
Records show two thirds of indirect materials used in production |
2,800 |
|
31 May |
Inventory at end of month: |
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|
For Job 901 |
nil |
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|
For Job 902 |
200 |
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|
For Job 903 |
450 |
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|
Indirect materials |
1,400 |