There is no posting to the Cost of Goods Variance account as the inventory is recorded at the standard cost - not the invoiced cost. Where the Cost of Goods Ledger is not operating, the posting to the creditor purchases account and stock movement account are at standard cost.
|
General Ledger Account |
Debit |
Credit |
|
Delivered Inventory Asset (Inventory Classification) Reversed |
|
324.70 |
|
Delivered Inventory Liability (Inventory Classification) Reversed |
342.50 |
|
|
Delivered Variance (Inventory Classification) Reversed |
|
17.80 |
|
Inventory Value (Inventory Classification) (Qty * Standard Cost) |
324.70 |
|
|
Purchase Variance (Inventory Classification) (Qty * Invoice Price) - (Qty * Standard Cost) |
23.20 |
|
|
Non Inventory Purchase (Orders Classification) |
137.50 |
|
|
Freight (Creditors Classification) |
10.00 |
|
|
Creditors (Creditors Classification) |
|
495.40 |
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