ACTIVITY

Fortified Chain of Bakeries

The management of Fortified Chain of Bakeries desires to come up with a costing record that presents the
movement or issuance and purchases of butter—their primary ingredient in baking pastries. Below are the
purchases and issuance of butter to the company’s different bakery chains for June:

Date Transaction
June1 Balance, 500 units at P48

4 Purchased 800 units at P52per unit

8 Issued 700 units to Bakery Chain1

12 Purchased 1,300 units at P65per unit

19 Purchased 200 units at P70

m
er as
25 Issued 500 units to Bakery Chain 2

co
29 Purchased 100 units at P72

eH w
A. Computation of raw material available for use, raw materials issued, and raw material inventory

o.
rs e Units Unit Cost Amount (Unit x Unit
ou urc
Cost)

Inventory, June 500 48 P24,000

o

Purchases:
aC s

June 4 800 52 41,600

vi y re

12 1,300 65 84,500

19 200 70 14,000
ed d

29 100 72 720
ar stu

Raw Materials Available 2,900 P171,300

Less: Issuance
is

June 8 (700)
Th

25 (500)

Raw Materials Issued (1,200)

Raw Materials Inventory 1,700

sh

Solution:

Units Unit Cost Inventory Amount

Inventory, June 500 48 P24,000

This study source was downloaded by 100000833458419 from CourseHero.com on 10-23-2021 03:36:01 GMT -05:00

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 Purchases:

June 4 200 52 10,400

Issuance, June 8

Inventory, June 0 0 0

Purchases:

June 4 100 52 P5,200

18 1,300 65 84,500

19 200 70 14,000

29 100 72 7,200

B. Composition of remaining raw materials inventory

m
er as
100 units at 52 P5,200

co
eH w
1,300 units at 65 84,500

o.
200 units at 70 14,000
rs e
ou urc
100 units at 72 7,200

TOTAL: 1,700 units P110,900

o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000833458419 from CourseHero.com on 10-23-2021 03:36:01 GMT -05:00

https://www.coursehero.com/file/83174836/FIFO-inventorydocx/
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