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Recording Transfers at Standard Item Cost
Recording Transfers at Standard Item Cost
You may wish to record transfers at the standard cost of the item. If the transfer price of the item is zero, the standard cost in place at the time of the transaction is used to value the transfer:
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1
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unit transferred
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$50
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accounting cost
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|
DR
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Intercompany Receivables
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50.00
|
|
|
CR Inventory
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50.00
|
Even under this scenario, you will get a variance entry if your standard costs change during the period:
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|
1
|
unit transferred
|
|
$50
|
accounting cost at time of transfer
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|
|
$51
|
accounting cost at period end
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|
|
|
|
|
|
|
|
DR
|
Intercompany Receivables
|
50.00
|
|
DR
|
Transfer Price Variance
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1.00
|
|
|
CR Inventory
|
51.00
|