what is the difference between closing Stock of finished goods & WIP Stock
saranraj
(CA FINAL)
(419 Points)
Replied 24 January 2010
For manufacturing a good or article, various components are involved like material, labour and other overheads etc... All these are applied to manufacture a particular article. At the end of the year there will be articles that were completed 100% but are not sold. It represents closing stock. There will be certain articles which might be under manufacturing or any other process to make it fit to be sold. These uncompleted and unsold articles that are under manufacturing process are called Closing WIP.
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