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GeekInterview.com > Interview Questions > Accounting > Cost Accounting
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Question: I transfer 20 Kg of Raw Material to WIP, but there will be weight loss incurred during the production periods.
Is this double entry correct?
Dr : WIP (18 Kg)--------------------S$20
Cr : Raw Material (20Kg)-----------S$20
If yes what will the double entry to capture the 2Kg weight loss?
Thanks,
Denny
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| June 06, 2008 02:47:03 |
#1 |
| carajeshsingh |
Member Since: June 2008 Total Comments: 1 |
RE: I transfer 20 Kg of Raw Material to WIP, but there will be weight loss incurred during the production periods.Is this double entry correct?Dr : WIP (18 Kg)--------------------S$20Cr : Raw Material (20Kg)-----------S$20If yes what will the double entry
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no.journal entry shall be passed to capture 2 k.g. weigt loss. finished product shaal automatically cover cost of 2 k.g. loss of material is normal wastage. |
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