12-4. Ledger Account and Materials Ledger Cards. The Carroza Company is engaged in manufacturing a product designated as Carro. Information concern- ing the purchase and use of materials during April is as follows:
Materials Requirements: To manufacture one unit of Carro requires: Material A – one unit; Material B – one unit; Material C – two units
All materials are issued when an order is placed in production.
April 2
100
A
700
$700
5
500
B
700
350
14
300
C
1,400
140
18
800
20
200
28
500
Orders Placed in Process During April: Materials on Hand April]: Date Started Quantity Material Quantity Cost
Materials Purchased
Material
A During April: Date
April 6 Quantity
1,000
Cost
$ 900
A
16
1,000
950
B
6
1,000
450
B
16
1,000
475
C*
6
5,000
400
Total.
……
$3,175
*1,000 units of Material C were unsuitable and were returned to the vendor April 12.
Required: Set up the balances as of April 1 in the materials account and in the materials ledger cards, and record the April transactions assuming fifo costing.