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)
accounting
GI (to simplify)
dr various consumption 750
cr raw stock / expenses 750
GR
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
var
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