Inventory

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2012 sir

A manufacturer’s classifications are raw materials,work in process and finished goods.how i will maintain this a/c as of 31/12/12 (ie which are the amounts i have to transfer to this a/c(work in process,finished goods)we are doing a concrete supply business.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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01 June 2012 1.Finished goods are completely finished the manufacturing process kept as stock, this need to be transfer to finished goods account
2.Work in progress based on the work completion percentage of each product this percentage completion will provide by the production department and compare with the process cost details you can transfer to WIP

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Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2012 sir
can u give me the journal entry's for this a/c's

thank you

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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01 June 2012 for Finished goods
Dr: Finished goods (Stock) A/c
Cr: Cost of goods a/c

For Work in progress

Dr: Work in Progress a/c
Cr: Manufacturing a/c

Manufacturing accounts consists of Raw materials & Overheads& Labour with the completion percentage

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Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2012 sir
thank u very much for your reply

thanks