while estimating working capital . the work in progress calcultion is really confusing why we taking raw material full value and direct labour and overheads 50% completion value kindly pls clear my doubts
while estimating working capital . the work in progress calcultion is really confusing why we taking raw material full value and direct labour and overheads 50% completion value kindly pls clear my doubts
@ Sangeetha WIP means partial production i.e goods are not fully complete, they are under processing.
We take 100% material and 50 % labour and OH as it is a logical assumption.
we assume that full material have been issued and labour have worked half and half of overheads are incured
when there is new company why we add WIP material with current asset raw material
Karia Overseas
Ahmedabad
CA
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Rahul Dang & Associates-Chartered Accountants
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CA Inter
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