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Scenario 1 How average cost changed after Adjusting inventory with a 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.
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1.In the Inventory Ledger, there is a transaction for this adjustment.
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2.In the General Ledger, transaction has been made.
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CA-2140 account is the account where the user input 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.
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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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