Re: production order settlement stock adjustment account

Hi All,

Maybe I put in this way

direct mat

direct labour

overhead 

total manufacturing cost 500

add beginning of wip      300

                                       800

less ending of wip           450

COGM                            350

1) with WIP by period end

during GI to prod order, mat, labour, overhead posting (total 500) will be debit consumption account whereas when come GR, will credit COGM account (350)

so in this case, consumption and COGM at any period end will never get net off? Is that correct?

in this case, under cost of sales accounting, how to match consumption with COGM by period?

2) no wip by period end

consumption = COGM

In this case, under cost of sales accounting, can match consumption with COGM by period end.

Need CO guru to advise of these 2 cases.

Thanks alot