ACCT 3224 Lecture Notes - Lecture 11: Finished Good
Document Summary
T-accounts: raw materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold, manufacturing overhead, operating expenses, sales. Raw materials inventory: when raw materials are bought the account is debited. Credit cash or accounts payable: when raw materials are going to be used in production (direct materials) it goes to work-in- Credit raw materials: when raw materials are going to be used indirectly in production (indirect materials) it goes to. Work-in-process inventory: when work is completed it goes to finished goods inventory. Credit work-in-process inventory: when raw materials are going to be used in production (direct materials) it goes to work-in- Credit raw materials: direct labour is a debit for work-in process. Debit work-in-process: applied overhead is a debit for work-in-process. Debit work-in-process: unadjusted cost of goods manufactured is a credit for work-in-process. Finished goods inventory: when work is completed it goes to finished goods inventory.