WIP calculation

This query is : Resolved

Share Report Follow Query Ask a Query

Abhijeet Govind Phale

Abhijeet Govind Phale (Querist)
Follow

22 April 2008 how to calculae WIP. what are the considerations for WIP calculation

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

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

R.V.RAO

R.V.RAO (Expert)
Follow

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

Abhijeet Govind Phale

Abhijeet Govind Phale (Querist)
Follow

22 April 2008 I need to know WIP calculations for construction industry

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

23 April 2008 hhhh,
There will not be WIP in case of construction industry, Just apply AS-7

Abhijeet Govind Phale

Abhijeet Govind Phale (Querist)
Follow

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Richa Bajoria

Pavithra Doss

Dhananjay Patil

Raviraj ponkshe

CA Saurabh Jadhav

Subscribe Now

WIP calculation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

Manager- Finance and Compliance

GST CONSULTANCY

Article Assistant

GST CONSULTANT

CA Final