problem in my company account any help ??

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Salam
Dear in my openion It is Job order costing generalization ...
Please Note;

1 )) Wood is the Raw Material treat as asset when You Purchase Wood
You must account for as given;

Raw Material (WOOD) dr
Party/Bank/Cash Cr

(It means Raw material has been account for and available for
Consumption.)

2)) When Raw Material Use in Production of Furniture.
You Must Pass General entry as given;

Work-in-progress Dr
Raw Material (Wood) Cr

(It means that Raw Material (Wood) Consumed in production of Furniture)

Further Note that;

All the Direct Material, Direct Labor when use in production must pass through work in process account and all the indirect expense must pass through Factory overheads control account.

3)) When Furniture is ready after production process, you pass general entry as given;

Finished Goods (Furniture) Dr
Work-in-process Cr.

(It means that Furniture has been produced by using Raw Material through work-in-process account.)

Regards,

Umar







<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Sajjad R1</i>
<br />you have to pass this entry

When you Purchase the woods then pass this entry
Purchase(Woods)Dr
Party/Bank/Cash (Cr)
its mean after purchasing the stock of wood will dr.
when ur manufacture the furniture then
Furniture Dr
Woods Cr
it mean after consumption(Input) of woods we get output as finish good furniture.
For adopting this procedure there is system of batch card throug this we consumed the Raw material and get Input as Finisgh Goods.

Regards

Sajjad Rehman

For Details,
+923334054651
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