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5001. When consume Raw materials
WIP Acc( Inventory category-Currunt asset) Debit
Raw-Mat Acc (Inv. cat--Currunt asset) Credit
2. When consume Capacity ( Ex: Labour)
Labour Payable Acc ( Liability Acc) * Credit
WIP Acc( Inventory category-Currunt asset) Debit
3. FG add to inventory (Finish production process)
WIP Acc( Inventory category-Currunt asset) Credit
FG inv Acc(Currunt asset) Debit
4. At the payment of labour salary ;
Labour payable acc(liability category) * Debit
Cash or Bank Acc ( currunt asset) Credit
NOTE:-
1. If there is any deference(net change of the period) in Labour payable Acc. * It will charge to the manufacturing expense account,
as an Over/Under absorption in manufacturing cost.
2. Item cost already added now on FG item. When its sales through the COGS account it will charge to the profit & loss Acc.
****Please verify above account scenario****
Is there any additions manufacturing double entries please comment below.
Thanks in Advanced.
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