Inventory and Sales

[Mike or Penny Novack]

I am using GnuCash for a farming enterprise so the common stock has a 
quantity but not a price, as the price is only determined at point of 
sale to a customer. What makes it more complicated is that the stock is 
sold to different customers at different unit prices, therefore I cannot 
assign a fixed price to the stock at hand. Thanks anyway Stephen

Backwards?

It's not the sale price used for valuing inventory but the production 
cost per unit.  A sale transaction would look like this:

xx/yy/15     Sold to customer A, some of item z
cash 15.00         (what you got for what you sold)
    cost of goods sold 10.00         (that's an expense)
sales 15.00     (that's an income)
           inventory of z 10.00     (that's the asset, supply of z depleted)

<<<<<  I'm showing the transaction as it would appear in a "journal", 
debits and credits >>>>

Note that the 15.00 (what you sold it for) and the 10.00 (what it cost 
you to put into inventory are independent of each other. If you drove a 
better bargain with customer B that might be 16.00 but it would still be 
10.00, what it cost YOU for that quantity of z.

Michael D Novack