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Standard Cost related Wip and Routing
Hi
I have a scenario where the standard cost of an item is $3.50
The costs to manufacture are machine direct costs of $200 and Labour Costs of $17.52
This is the GL impact of a work order completion of the final operation in the routing:
DR Finished Goods Inventory $3.50
CR WIP Inventory $3.50
DR WIP Inventory $200
CR Materials Usage variance revisions $200
DR WIP Inventory $17.52
CR Direct Labour recovery $17.52
Question: How do the values for the machine costs and direct labour recovery get removed from inventory WIP?
i.e. what transaction or process is required to move these costs to the cost of finished goods inventory as a revaluation?
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