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Oct 22, 2011 at 11:03 AM

Cost Of Goods Calculation


Hi All,

I want to know about cost of goods sold calculation.

I book a PO worth Rs. 149610.

Copy PO to GRPO. system created following JE

Goods Recd Not Invoiced 149610 (CR)

finished Product 149610 (DR)

Copy GRPO to Landed Cost for recording additional costs.. system created following journal entry

Finished Product 35764.22 (DR)

Custom Duty 30764.22 (CR)

Clearing 2000 (CR)

Octroi (Local) 3000 (CR)

Sold goods from the batch in which above GRPO was created. System created the following journal entry.

Customer 35956.00 (DR)

CST 705.00 (CR)

Sale Local 35251.00 (CR)

Finished Product 32634.71 (CR)

Finished Goods u2013 Cost Of Goods Sold 32634.71 (DR)

How this amount is debited and credited to Finished Product and Cost Of Goods Sold Account ?