W I P

A method suggested by ICAI....... attached

Yes, there are simpler steps for estimations, but follow the link for better understanding.

1.Divide the total production costs for the period by the total number of equivalent units produced to determine your cost per unit. Multiply the cost per unit by the equivalent units sitting in work-in-process inventory at the end of the period to calculate the value of ending WIP inventory.

2.  The calculation of ending work in process is:

Beginning WIP + Manufacturing costs - Cost of goods manufactured = Ending work in process 

Above 2nd option is Then How to calculate purchase and sales details and WIP

Its identical formula as of closing stock calculation in trading.

ie. Cls. Stock = Opening stock + purchases - sells (of stocks) ....

Here sells gets replaced by goods ready........ and purchases by (input raw material+ other costs).......

So, Closing WIP = Op. WIP + (input cost of raw material+ other cost of production) - cost of ready goods.

Hope you would have got it.... Think...

Yes Sir.,

I got it... Cost of ready goods means Finished Goods.

Am I right Sir...?

Yes, U R Correct...........