Differences
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using_average_costing_with_inventory [2019/08/08 16:53] admin |
using_average_costing_with_inventory [2019/08/08 17:04] admin |
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|Account||Debit||Credit||Part||Quantity||Bill|| | |Account||Debit||Credit||Part||Quantity||Bill|| | ||
- | |Widget | + | |Widget |
- | |Accounts Payable|| | + | |Accounts Payable|| |
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- | Since the change in inventory value does not equal the amount of the new bill, the overage (or shortage) is immediately expensed into the GL Account - Inventory Adjustments. The GL activity for this would be: | + | Since the change in inventory value does not equal the amount of the new bill, the overage (or shortage) is immediately expensed into the expense account specified on the Part (i.e. Material Expense). The GL activity for this would be: |
|Account||Debit||Credit||Part||Quantity||Bill|| | |Account||Debit||Credit||Part||Quantity||Bill|| | ||
- | |Widget inventory Asset||> $ 330.00|| | + | |Widget inventory Asset|| $ 330.00|| |
- | |inventory Adjustments||> $ 30.00|| | + | |Material Expense|| $ 30.00|| |
- | |Accounts Payable|| | + | |Accounts Payable|| |
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- | Changing the existing cost will revalue the existing inventory (by $0.10 each times a quantity of negative 15 ), which must be taken into consideration. The overage (or shortage) is immediately expensed into the GL Account - Inventory Adjustments. The GL activity for this would be: | + | Changing the existing cost will revalue the existing inventory (by $0.10 each times a quantity of negative 15 ), which must be taken into consideration. The overage (or shortage) is immediately expensed into the expense account specified on the Part (i.e. Material Expense). The GL activity for this would be: |
|Account||Debit||Credit||Part||Quantity||Bill|| | |Account||Debit||Credit||Part||Quantity||Bill|| | ||
- | |inventory Adjustments||> $ 1.50|| | + | |Material Expense|| $ 1.50|| |
- | |Widget inventory Asset||> ||> $ 1.50||Widget|| | + | |Widget inventory Asset|| |
- | |Widget inventory Asset||> $ 360.00|| | + | |Widget inventory Asset|| $ 360.00|| |
- | |Accounts Payable|| | + | |Accounts Payable|| |
Note that after this purchase there will be 285 widgets in inventory at a value of $1.20 each. | Note that after this purchase there will be 285 widgets in inventory at a value of $1.20 each. | ||