Ask Experts Questions for FREE Help !
Ask
    AmyBobs's Avatar
    AmyBobs Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 7, 2014, 06:56 AM
    Accounting for customer paid raw materials
    A customer has paid for raw materials used to manufacture a finished good. The vendor has already been paid and the items have been received in inventory. How do I account for the receipt of the transaction paid by the customer for raw materials?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #2

    Jul 12, 2014, 05:21 PM
    you would record the quantity in inventory records with no value, alternatively show the transaction in inventory with credit to the customers account, the nature of the transaction must be analysed to ensure the correct treatment
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Recycled raw materials [ 0 Answers ]

How can a naked eye tell the difference between recycled ABS and recycled Polyproplene The person has no idea of the different types of plastic raw materials.

Prepare journal entry for materials and labor based on raw materials issued $850 [ 0 Answers ]

Prepare journal entry for materials and labor, based on raw material issued $850, general use in the factory $600, labor time tickets $1,600, and for supervision $400

Figure out the right $ for Raw materials Used [ 0 Answers ]

Needing help to determine tight $$$$? Raw materials purchased $160,000 Raw materials beginning of month $15,000 Raw materials end of month $10,000 Product cfost (direct material, direct labor, manuf. OH) My calculation here should match the calculation on the COGM statement for material...

Accounting for raw materials inventory. [ 1 Answers ]

When accounting for raw materials inventory (logs), must the cost of the material be used or can it be changed based on what someone "thinks it's worth?" This would be all within the current month and during "down time" at the mill.

View more questions Search