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Re: Variance Cost when closed Production Order

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No, ur ideal journal is wrong.

 

Say ur std cost of finish good is $100, and sum of material avg is $80, the correct journal should be

 

 

When material issue

inventory credit $80, WIP debit $80

 

when WO complete

inventory debit $100, WIP credit $80, and Variance credit $20

 

Frank


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