WIP calculation
This query is : Resolved
22 April 2008
how to calculae WIP. what are the considerations for WIP calculation
22 April 2008
IT DEPENDS ON FOLLOWING:
1. Industry type,
2. Stages Involved,
3. Average material in each stage,
4. Size of plant of each stage,
5. Nature of Materials and final products,
6. Management policy of purchase,
7. Value, Mass and processes involved
1. Industry type,
2. Stages Involved,
3. Average material in each stage,
4. Size of plant of each stage,
5. Nature of Materials and final products,
6. Management policy of purchase,
7. Value, Mass and processes involved
22 April 2008
SRI DASHRATH IS RIGHT.
THE BASIC RULES ARE SIMPLE AND COMMON WITH A FEW EXCEPTIONS.
USUALLY
THE RAW MAT.CONSUMED PORTION IS VALUED AT COST ( PRICING OF ISSUES BASED ON LIFO/FIFO/WT.AVERAGE ETC.)
PLUS A PROPORTION OF LABOR AND VARIABLE MFG. COSTS ADDED AFTER ASCERTAINING THE STAGE UPTO WHICH THE PRODUCT IS FINISHED LIKE 25% COMPLETED OR 50% COMPLETED ETC...
TO ASCERTAIN THE % OF COMPLETION TE PLANT TECHNICAL STAFF CAN HELP.
THE PRODUCTION CYCLE IS DIFF. IN DIFFERENT IND. LIKE CONTINNUOUS PROCESS INDUSTRY ( LIKE OIL) OR SEASONAL INDUSTRY ( LIKE SUGAR) PERISHABLE PRODUCTS (LIKE MILK PRODUCTS ).
THE NATURE AND QULALITY OF RAW MAT. CAN SOME TIME RESULT IN VARIATIONS IF NOT DISTORTIONS IN VALUATION AS HAPPENS IN GLASS IND . WHERE SAND IS A RAW MATERIAL.
DUE TO RAINS OR WET / SOAKED SAND CONDITIONS THE SAND WHEN AFFECTED , THIS CERTANLY AFFECTS THE IN PROGRESS CONTENTS OF GLASS.
DR.B.K.BHAR'S COSTING METHODS CAN SURELY BE OF HELP IN VALUING WIP.
R.V.RAO
THE BASIC RULES ARE SIMPLE AND COMMON WITH A FEW EXCEPTIONS.
USUALLY
THE RAW MAT.CONSUMED PORTION IS VALUED AT COST ( PRICING OF ISSUES BASED ON LIFO/FIFO/WT.AVERAGE ETC.)
PLUS A PROPORTION OF LABOR AND VARIABLE MFG. COSTS ADDED AFTER ASCERTAINING THE STAGE UPTO WHICH THE PRODUCT IS FINISHED LIKE 25% COMPLETED OR 50% COMPLETED ETC...
TO ASCERTAIN THE % OF COMPLETION TE PLANT TECHNICAL STAFF CAN HELP.
THE PRODUCTION CYCLE IS DIFF. IN DIFFERENT IND. LIKE CONTINNUOUS PROCESS INDUSTRY ( LIKE OIL) OR SEASONAL INDUSTRY ( LIKE SUGAR) PERISHABLE PRODUCTS (LIKE MILK PRODUCTS ).
THE NATURE AND QULALITY OF RAW MAT. CAN SOME TIME RESULT IN VARIATIONS IF NOT DISTORTIONS IN VALUATION AS HAPPENS IN GLASS IND . WHERE SAND IS A RAW MATERIAL.
DUE TO RAINS OR WET / SOAKED SAND CONDITIONS THE SAND WHEN AFFECTED , THIS CERTANLY AFFECTS THE IN PROGRESS CONTENTS OF GLASS.
DR.B.K.BHAR'S COSTING METHODS CAN SURELY BE OF HELP IN VALUING WIP.
R.V.RAO
22 April 2008
I need to know WIP calculations for construction industry
23 April 2008
hhhh,
There will not be WIP in case of construction industry, Just apply AS-7
There will not be WIP in case of construction industry, Just apply AS-7
28 April 2008
thanks Dashrath
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- Tax liability on income of freelancer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
