Inventory Assembly and Cost Averaging

Uncategorized 1 Minute

by Sandy Schneiter
(Seattle, WA )

We are a small manufacturer of espresso equipment. We use 2007 Premier Manf & Wholesale edition. I have created an inventory assembly, added all parts and the Cost of materials is $28.67. I put in a cost of $36.17 to include Labor to create this item. When I sell it, QB’s has calculated an average cost of $29.15 for this item and that is what QB uses on our P&L.

I would like to have QB use my cost of $36.17 for our P&L. Can this be done?

Thanks,
Sandy

Comments for Inventory Assembly and Cost Averaging
Feb 18, 2011 Build Inventory Assembly and COGS Credit

by: George C

Whenever I build Inventory assembly the asset Finished goods inventory account is debited and Cost of Goods Sold is credited. I feel that this journal seems to me not correct. It should be Finished Inventory account debited and Raw Material Inventory account credited. I would like to know why the Cost Of Goods Sold is credited. How can I correct this entry. Would appreciate your reply.
Feb 18, 2011 Quickbooks-Inventory Assembly

by: George C

My earlier Question relates to Quickbooks Enterprise Accounting software. When I build Inventory Assembly in Quickbooks, The Inventory Finised goods is debited and the Cost of Goods Sold is credited. I feel this journal is not correct.Since we are shifting inventory from one asset account to another asset account ie Finished Goods account, the cost of goods sold account should not be affected.Only the Inventory account should be affected. Would appreciate a reply, showing how to correct this mistake.
Sep 27, 2011 Inventory Assembly and Cost Averaging

by: Anonymous

I too am having the same issues with build assemblies – it’s increases our inventory and reduces our cost of goods. I too feel that this is incorrect. Please advise. Thanks.
Return to QuickBooks Q&A.


Published by Jennifer

I've been involved in the freelance bookkeeping community in some form or fashion since 1992. MSAcc from UIUC 2018. Formerly certified in QuickBooks. Currently the Head Teaching Assistant in the online Masters of Science in Accountancy program at UIUC. This site is mine and these thoughts are my own.

Published

Leave a Reply