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Scenario 1 in Inventory Adjustment





Scenario 1            How average cost changed after Adjust inventory with different unit cost?


This inventory adjustment increases the number of items on hand by two and the total value of the inventories on hand by $350, which the original unit price is $1.8182.



1.In the Inventory Ledger, there is a transaction for this adjustment.





2.In the General Ledger, transaction has been made.



          CA-2140 account is the account where user just inputted in the Inventory adjustment, it will be credited $700.00.

          CA-2140 account is this item’s inventory account it will be debit $700.00

3.Back to the Inventory details.

          Original current value is 1.8182*100=181.82

          You can see quantity on hand is 102, which is 100+2=102.

          Current value = 181.82+700 = 881.82

          Average cost = Current value / Quantity on hand = 881.82 / 102 = 8.6452

          Available is 102 (100+2=102).




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