Urgent

Your question,"Is expenses incurred to convert WIP into finished goods is manufacturing expenses?" Right?

Answer is YES

Well this is not my Question...My question is whether the change in the value of stock i.e. due to escalation cause the market value decreases then is the difference will be charged in manufacturing cost?

No you cant charge as manufactring cost instead you can charge to P/L account.

beacuse manufacturing cost refers to all the direct material, direct labour and direct overheads form parts of manufacturing cost. these cost are easily identifiyable with the finised product. where as reduction in market value due to escalation cause is not direct item. and hence it should be charged to P/L