Question
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"
CR: COGS
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?