Rm v/s fg v/s wip

1.Material which are used for manufacturing the products are RM

2.Finished goods which are incomplete i.e., partial work done and further work is required to convert the same into FG are WIP.

3.Goods which are ready to remove from factory are FG. 

The Machine parts are not our stock, it will be third party stocks and will not reflect in our books, except in excise records. The chemicals in their basic state is RM for the electroplating company The mixture /processed chemical ready to use for electroplating is WIP , the material /mixture which is currently in use for electroplating is also WIP. FG is the used and ready to dispatch products, which are laying in the factory not picked up by the engineering units( FG valuation will be only the coating cost/material and overhead) no way it should be the value of parts of engineering goods/parts. Traditionally, these units bifurcate their goods in RM and FG only, As WIP valuation is difficult to prove at each stage for excise purpose.

Thankyou so much for your replies. My queries answered. Regards Raj C Doshi