Accounting entries during process change in production

[Former Member]

Hi

Can someone tell me what will the accounting entries be during a production cycle from one process to another?

For example.. raw materials first put into first process of production... then second process and so on....

how are the WIP account and Semi finished account used?

Thanks

[Former Member]

Hi

At the time of goods issue:

COGM A/C......................... Dr

TO RM A/C

Best Regards

Ashish Jain

[Former Member]

COGM? When do we use WIP and Semi finished goods accounts in the cycle?

[Former Member]

Cost of Good Manufactured.

At the time of WIP Calculation

Work in process Ac--DR

TO Change in stock ac

At the time of settlement

Change in stock ---DR

TO WIP Ac

Best Regards

Ashish Jain

Message was edited by:

Ashish Bohara

[Former Member]

ok and what about each process during a production ? for example.. first process could be Heating.. then Melting.. etc .. etc.. what will the entries be after each process because the value of stock obviously increases....?