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Production completion The very first step is to check whether production is fully completed or not for the particular period/batch/job/process/work, etc. Sometimes we need to close the process during the production; this situation may arise where we need to do the closing month-end or year-end clos
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The first step is to confirm whether production is fully completed for the specific period, batch, job, process, or work.
It's crucial to ensure all inventories, including raw materials, packing materials, consumables, and finished goods, are updated and match store records, with no entries missed.
When closing these ledgers, you need to check and update them properly for the particular production period or batch, ensuring particulars are posted correctly within the company's system.
This variance checking compares actual material, labour, and utility consumption against the standard Bill of Materials in terms of quantity and price to analyse costing variances and ensure production costs are accurate.
Calculating Work in Progress is necessary when closing books and production is not fully completed, requiring an assessment of its value for cost of production calculations and financial preparation.
The final step is to reconcile the costing ledger details with financial ledgers and analyse any differences in profit or loss between the financial P&L and the Costing P&L.
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