Example for Raw Material Calculation

Standard Cost Price Diff Actual Cost Accounting Entries-RAW Material

100 15 115 Dr Cr
Inventory RM A/c 100,000.00

Preliminary MIGO (PO) GRN

S.No Category Qty Value (S.Cost) Price Diff Ex.Diff Actual Cost Price Pur Price Diff A/c 15,000.00
To GR/IR Clearing A/c 115000
1.00 Begin.Inventory - - - - - -
MIGO Goods Issue RM Consumption A/c 12400
2=a+b Receipt 1,000.00 100,000.00 15,000.00 - 115,000.00 115.00 To Inventory RM A/c 12400
b P.DIFF 15,000.00
ML Entry-
a
PO-GRN 1,000.00 100,000.00 - 100,000.00 100.00 Consumption Next Level (FG) A/c 1860
To RM ML-Prd 1860
3=1+2 Cum. Inventory 1,000.00 100,000.00 15,000.00 - 115,000.00 115.00

4=c+d Consumption 124.00 12,400.00 1,860.00 - 14,260.00 115.00 Inventory RM A/c 13,140.00
d Next Level-FG 1,860.00 - 1,860.00 ML Entry-Closing To RM ML-Prd 13,140.00
c Goods Issue (FG) 124.00 12,400.00 - - 12,400.00 100.00
5=3-4 End.Inventory 876.00 87,600.00 13,140.00 - 100,740.00 115.00

Inventorty Balance 100,740.00

Example for Finished Good Material Calculation

Standard Cost Production Var Diff Receipt From L.Level Actual Cost Accounting Entries-Finished Material
1429.3 (32,038.83) 6,260.00 Dr Cr
Inventory FG A/c 57,172.00
MIGO (PO) GRN
S.No Category Qty Preliminary Value
Price Diff Ex.Diff Actual Cost Price To COGM-FG A/c 57,172.00

1.00 Begin.Inventory - - - - - - COGM-FG A/c (32,038.83)

Order Settlement
2=a+b+c Receipt 40.00 57,172.00 (25,778.83) - 31,393.17 784.83 To Prod-Price Diff-FG A/c (32,038.83)
Receipt From PACK 4,400.00
Receipt From RM 1,860.00 COGS A/c 4,287.90
VL01N-Delivery
P.Diif-2 (7,399.29) - (7,399.29) To Inventory FG A/c 4,287.90
P.Diff-1 (24,639.54) - (24,639.54)
Goods Receipt-1 30.00 42,879.00 - 42,879.00 1,429.30 ML Entry - COGS A/c (1,933.41)
Goods Receipt-2 10.00 14,293.00 1,429.30 Consumption To FG ML-Prd (1,933.41)
3=1+2 Cum. Inventory 40.00 57,172.00 (25,778.83) - 31,393.17 784.83
4=c+d COGS 3.00 4,287.90 (1,933.41) - 2,354.49 784.83 Inventory FG A/c (23,845.42)
example d Revalution of COGS (1,933.41) - (1,933.41) ML Entry -Closing To FG ML-Prd (23,845.42)
example c Goods Issue -Delivery 3.00 4,287.90 - - 4,287.90 1,429.30
5=3-4 End.Inventory 37.00 52,884.10 (23,845.42) - 29,038.68 784.83