Question

How do I recognize this? I am under the assumption that the first part is Dr to COGS and Cr to Materials but am admittedly lost. F. At year-end, there was approximately $9,600 of raw materials (used in manufacturing the in-home gym equipment) on hand. There were no uncompleted equipment projects at year end but there were several pieces of unsold, finished product. Jessie estimated the cost of this product at $13,500.

Answer 1

Inventory is a current asset account found on the balance sheet, consisting of all raw materials, work-in-progress, and finished goods that a business has accumulated.

In the above question

Cost of raw material in hand = 9,600

Cost of finished goods = 13,500

This should be recognised in the balance sheet as inventory.

SUMMARY

Total of inventory to be recognised in balance sheet equal to

Total raw material in hand plus total finished goods in hand=

9,600+13,500 = 23,100