Adjusting Materials Ledger Cards and Accounts to Conform to Inventory
Accounts - Inventory Valuation:
When the inventory count differs from the
balance on the
materials ledger card,
the ledger card is adjusted to conform to the actual count.
if the ledger card balance shows more
materials units than the inventory card, and entry is made in the issued
section; and the balance section is reduced to equal the verified account.
In case the materials ledger card balance is less than the physical count,
the quantity differences may be entered in the received section or may be
entered in red in the issued section with the balance section being
increased to agree with the actual count.
In addition to the correction on the
materials ledger card, the materials account must be adjusted for the
increase or decrease. If the inventory count is less than that shown on the
materials ledger card, the following journal entry should be recorded:
Factory Overhead control
Inventory adjustment to