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
Menu
Working capital management
Replies (3)
@ 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
In WIP we assumed that raw material is 100% incurred while labour nd oheads r 50%. thats why in silent question we take RM 100%, LABOUR ND OVERHEAD 50%.
when there is new company why we add WIP material with current asset raw material
Recent Topics :
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
- Sell of CAFC books
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
- Revocation of suo moto cancelled GST registration
- Is there any faculty taking chapterwise test in CA
- Late Fees and Interest
Related Topics :
CAclubindia
