Manufacturing
Recognizing Byproduct Inventory at Harvest
Recording the value of a byproduct when it is produced, reducing the cost of the main product.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Byproduct Inventory | Asset (+) | 100.00 | - |
| Work-in-Process (Main Product) | Asset (-) | - | 100.00 |
💡 Accountant's Note
Instead of waiting to sell the byproduct, some factories recognize its value immediately to lower the 'net cost' of the main items they are making.
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