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Below are the entries: At the time of PO: no entry At the time of Goods receipt: Stock A/c Dr To GR/IR

/IR A/c At the time of Invoice receipt: GR/IR A/c Dr To Vendor A/c Issued to production: Consumption of Raw materials A/c Dr To Stock A/c Received from production: Inventory A/c Dr To Cost of goods produced A/c To Price difference A/c Dispatched to customer through delivery: Cost of goods sold A/c Dr To Inventory A/c

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