Accounting & Bookkeeping & Small Business Forum

[echstudios]

Our company does a lot of custom DVD work and I have set up our services in Quickbooks to automatically adjust our inventory of DVD discs, labels, and cases when one is sold. The value of these items are easy to calculate based on their cost, however the largest cost into the DVD is actually the printer ink used on the labels. Because of this, it is imperative that I have Quickbooks take that into account as well, but I'm just not sure how.

The six set ink cartridge runs about $103 and I've kept a running tally of how many labels I can print until the ink runs out. I'm estimating it is around 45-50.

Thanks ahead of time for any input,
Nick

[dp1903]

I'd set the ink up as a standard cost and apply the same cost to each DVD. I suppose you could set up each ink cartridge as 45 to 50 units of inventory so that a unit is expensed with each sale. At the end of an accounting period, quarter or year, you can adjust for actual expenses.

[sgbdad23]

I am not sure that I would do it this way, but becasue you asked about it here is my answer.

Buy a new Ink Cartridge
Debit Inventory:Ink 103.00
Credit Cash 103.00

Each DVD sale
Credit Inventory:Ink 2.06
Debit Cost of goods sold 2.06

Again this is at your request.

I would just call the ink office supplies, and office expense it at the end of the month based on orders that have been shipped.

2 different ways to achieve the same end.

Scott