Showing results for 
Search instead for 
Did you mean: 
Level 1

Periodically Adjusting Inventory from COGS

I work as a bookkeeper for a small manufacturing company. Currently, we code all of our material purchases to COGS and do inventory counts/adjustments on a year end basis. This usually results in making JE's for the 3 inventory accounts we have (Raw Materials, WIP, and Finished Goods) for inventory increases by:

DR: "Inventory Account"


My question is this... We are able to track our Raw Materials and Finished Goods throughout the year. If we wanted to make inventory adjustments more often throughout the year and we know our Raw Materials and Finished Goods is there a way to calculate our WIP from these figures?  


1 Comment 1

Periodically Adjusting Inventory from COGS

Hello strennic16,


Welcome to the Community! I will be delighted to shed some light here. When it comes to WIP, it accumulates costs in an asset account. However, once the project is finished and sold, that cost in the asset account is then transferred to the P&L report as an expense account. Let me know if you need further clarification! My team and I are here to lend a helping hand! Take care.

Need to get in touch?

Contact us