Manufacturing

Inbound Freight on Raw Materials

Adding the cost of shipping materials to the factory into the inventory value.

Account NameTypeDebit ($)Credit ($)
Raw Materials InventoryAsset (+)300.00-
Cash / Accounts PayableAsset/Liability (-)-300.00

💡 Accountant's Note

Under IAS 2, all costs to bring inventory to its present location and condition must be capitalized.

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