top of page

Inventory: Common Journal Entries

Updated: Sep 2, 2019

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:

Help improve this article

If you have feedback or questions, please leave a comment in the section below.

Sign Up!

Click our Sign Up button (top of page) to receive updates, additional exam prep information and to connect with our community.

319 views0 comments

Recent Posts

See All

Analyzing Financial Issues

When analyzing financial case studies, always break them down into smaller issues, which can then be addressed individually. If you are writing your CPA Exams (CFE or others), exam time will be const

Statement of Financial Position / Balance Sheet Elements

The Statement of Financial Position (a.k.a Balance Sheet using Canadian ASPE accounting standards) presents the company's total assets, liabilities and the netted amount - called shareholder's equity.

Statement of Profit or Loss / Income Statement Elements

The Statement of Profit or Loss (a.k.a. Income Statement using Canadian ASPE) shows the company's earnings and expenses. Different countries may have their own unique presentation standards for the sa


bottom of page