Specifically in managerial accounting, is there an equation that I can use to find what work in process is?
2007-09-04 17:00:52 · 3 answers · asked by the m 1 in Business & Finance ➔ Small Business
Work in Progress is the cost of jobs that aren't complete. We use separate accounts for Labor, materials and subcontractors so if you were to add them together you would have our WIP. When you finish a job you remove the cost from those asset accounts and move it to cost of good sold.
Jobs like repairing ships can take months so you always have many jobs incomplete at the end of every month so those cost that have been incurred are WIP. We do billings during those months so we have a liability for work billed that isn't complete.
2007-09-04 17:09:53 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
I'm not sure there's a formal equation for it, but I would say cost of goods manufactured for the period - ending finished goods inventory in the same period will give you work in process.
2007-09-05 00:07:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Try work in progress and you will do better.
2007-09-05 00:08:09 · answer #3 · answered by towanda 7 · 0⤊ 1⤋