What does changes in inventories of finished goods, work-in-progress and stock-in-trade implies?


7 Answer(s)


Stock in trade are the raw materials you have in your godown, warehouse etc
WIP is the raw materials that are going through your factory and being assembled into finished products on your assembly line
Finished goods are the completed products that are ready for sale

Change in inventory in any of the above is nothing but the quantity of finished goods or WIP or stock in trade due to various scenarios.

As WIP increases, stock-in-trade decreases.
As finished goods increases, WIP decreases etc.

Cost of materials consumed is the amount by which Stock in trade has reduced during this specific accounting period.

if i have opening stock of Rs.40,000\- and closing is 29,00,000\-
then balance in change in inventory would be show in negative or +.

Narender Singh

it will be () in the p&l statement as it is an expense not accounted in this financial year but to be added when the goods are converted into revenue, since it has not been converted into revenue or sales , the expense is deducted as () in the expense a/c.

it will be () in the p&l statement as it is an expense not accounted in this financial year but to be added when the goods are converted into revenue, since it has not been converted into revenue or sales , the expense is deducted as () in the expense a/c.

My qustion is that i work in FMCG company where broiler birds are produced to be sold in market
They purchase birds , consume diesel , coal , medicine and feed for birds what is the double entry for all purchases and consumptions how they are posted in Income expense file and balance sheet
Mean purchases birds of 100 $ qty 500 , Birds died 50 , Diesel consumed 10 ltr , Medicine consumed $ 50, coal consumed 5 ton of $ 50, feed consumed of $ 100, what is the double entry and postin from general journal to P&L account


I didn’t get the answer of 2nd question(difference between changes in inventories of finished goods,wip,stick in trade and cost of material consumed??

Can any body heply me...?