Inventory Accounting Entries

Inventory Accounting Entries:
During Goods Receipt 
            Stock Account - Dr 
            G/R I/R Account  -  Cr 
            Freight Clearing account - Cr 
            Other expenses payable - Cr
  
During Invoice Verification
                  G/R I/R Account - Dr 
                  Vendor - Cr
When the Goods are issued to the Production Order the following transactions takes place: 
             Consumption of Raw Materials - Dr 
             Stock A/c - Cr
When the Goods are received from the Production Order the following transactions takes place:
              Inventory A/c - Dr 
              Cost of Goods Produced - Cr                      
              Price difference - Dr/Cr 
             (depending on the difference between standard cost and actual cost)
When the Goods are dispatched to customer through delivery the following transactions takes place:
               Cost of Goods Sold - Dr 
               Inventory A/c - Cr
When the Goods are issued to a Cost Center or charged off against expenses the following transactions takes place: 
               Repairs and Maintenance - Dr 
               Inventory A/c - Cr
When the Goods are stock transferred from one plant  to another, the following transactions takes place: 
                Stock A/c - Dr (Receiving location) 
                Stock A/c -  Cr (Sending location) 
                Price difference - Dr/Cr  
               (due to any difference between the standard costs between the two locations)
When the stocks are revalued, the following transactions takes place:
                 Stock A/c - Dr/Cr         
                 Inventory Revaluation A/c - Cr / Dr
When the Work in Progress is calculated the following transaction takes place:
                 Work in Progress A/c - Dr 
                  Change WIP A/c - Cr
Physical verification /shortages and excesses :  Shortages/excesses on authorizations shall be adjusted using the physical inventory count transaction.