Throughout the year, we will have created journal entries showing the purchase of Raw Materials, the transition of Raw Materials into Finished Goods Inventory, and finally the sale of Finished Goods. Below you will find some common journal entries relating to Inventory.
Purchase and Transition of Inventory
Purchase of Raw Material:
Transition of Raw Material Inventory into Work in Process Inventory:
Transition of Work in Process Inventory into Finished Goods Inventory
Sale of Finished Goods Inventory:
Sale of Finished goods for cash or A/R:
Transition of Finished Goods Inventory into a Cost of Goods Sold expense:
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