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    CostTramp's Avatar
    CostTramp Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Oct 28, 2008, 07:13 AM
    Cost Accounting problems, Inventory cost updating
    How to update the inventory for manufacturing company?
    Example:

    Original inventory: ($)

    Part 1, 1000
    part 2, 2000
    part 3, 3000
    part 4, 4000

    Now, we pull out part 1, part 2, part 3, part 4 out to build Part A as inventory
    let's say, the cost of Part A will be (1000+2000+3000+4000)(material)+3000(Labour)+3600( Overhead)= 16600

    How should I update the inventory cost, Entry?

    Your help will be appreciated.:(

    :confused::confused::confused:
    muslimrao's Avatar
    muslimrao Posts: 34, Reputation: 2
    Junior Member
    		  
    #2

    Oct 28, 2008, 11:59 AM
    i think your question is incomplete.!

    clarify these invertory. which one is finished goods ending or opening or which one is work in proces..

    by knowing this info can only solve the problem .!
    MF Controller's Avatar
    MF Controller Posts: 25, Reputation: 2
    New Member
    		  
    #3

    Oct 29, 2008, 10:58 AM

    Inventory costs? Inventory costs is only the material. Inv vs COGS Mater, the other entries would be for the labor and ovhead in COGS
    CostTramp's Avatar
    CostTramp Posts: 6, Reputation: 1
    New Member
    		  
    #4

    Nov 3, 2008, 03:27 PM
    Yeah, I got confused
    Thank you guys, Somebody explained to me.
    I just graduated from school,and am working as a cost accountant. It looks everything is different from school :(

    Thank you both of your guys very much! I appreciate.
    muslimrao's Avatar
    muslimrao Posts: 34, Reputation: 2
    Junior Member
    		  
    #5

    Nov 3, 2008, 11:26 PM

    Our pleasure.
    MF Controller's Avatar
    MF Controller Posts: 25, Reputation: 2
    New Member
    		  
    #6

    Nov 4, 2008, 10:03 AM
    Your welcome... Good luck in your career... Cost Accounting is a good start and way more fun than corporate accounting (general)... but perhaps I am biased since I'm a controller for a manufacturing corporation!
    CostTramp's Avatar
    CostTramp Posts: 6, Reputation: 1
    New Member
    		  
    #7

    Nov 4, 2008, 03:33 PM

    Hehehehehe, Yes, I think cost accounting has much more fun than general accounting. Just too much pressure for me since I am the only one who is doing cost accounting work in my company, that is a new manufacturing LLC.
    I have to go to the factories, and go through all those processes. I doubt I would be an expert of production in the near future. ;)
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