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cost of sales accounting and system effect

Hi All,

Understand further from the forum these 2 days related to prod order settlement.

Now would like to clarify the below.

GI of manufacturing cost 750

raw 500

labour 200

prod overhead 50

GR or confirmation 500

WIP 150

var (say order teco with variance) 100 (knowing cannot have both wip and variance, this is just for the sake of asking my question)


GI (to simplify)

dr various consumption 750

cr raw stock / expenses 750


dr fg 500

cr cogm 500

wip mth end

dr wip bs 150

cr wip pl 150

wip reversal next period

dr wip pl 150

cr wip bs 150


dr prod var 100

cr cogm 100

statement (say new production)
total manufacturing 750

opening wip 750

closing wip 150

cogm 600

1) may I know  can I say (cogm + wip pl = 750) and various consumption (750) net off in the same period in terms of FI right? of course cogm is only 600

2) may I know production variance (dr prod var of 100) has what effect to costing?

3) may I know from the production order settlement and confirmation, the purpose is to know how much already cogm, how much wip and how much variance?

Thank you very much


Hi Sapask,

Yes to all, with small correction.....

Production variance account is meant for reporting in FI, not in COPA



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