We have an item that was purchased on a purchase order for $5,020.00, Goods Receipt for $5,020 and A/P invoice for $5,020.00. The item was received into an in transit warehouse while the product was on the water, then transferred to a consigned warehouse with a cost of $5,020.00. The item was sold to the customer for $5,500. The journal entry shows that the Cost of the item was $13,386.666667. We are using FIFO inventory and the item is manage inventory by warehouse and the items are batched managed. On the inventory audit report for both the in transit warehouse and the consigned warehouse, the cost shows the correct cost of $5020.00.
Please let me know where to look to see where the cost of $13386.666667 is coming from.
Thank you,
Fred.