Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Calculate ending raw material inventory (https://www.askmehelpdesk.com/showthread.php?t=395046)

  • Sep 9, 2009, 10:57 PM
    lt110705
    Calculate ending raw material inventory
    How do I calculate ending raw material inventory?
  • Sep 10, 2009, 01:40 AM
    morgaine300

    The same way you calculate an ending balance for any account, by looking at the debits & credits.

    But you need to know the "flow" of these accounts first. Raw material is almost exactly the same as merchandise inventory. The only difference is that instead of coming out because it's sold, it's coming out because it's being put into production.

    So purchases of raw materials adds to the balance and putting it into production reduces the balance.

  • All times are GMT -7. The time now is 04:48 AM.