Q: I am trying to grasp the concept of the WIP in relation to a business.
28 August 2012
Work in progress relates to goods that are in the process of manufacture but have not reached the finished goods stage.
Work in progress relates to goods that are in the process of manufacture but have not reached the finished goods stage. Accordingly, it is necessary to value these to take into account the costs incurred up to the stage of production they have reached and to adjust for opening and closing work in progress in the accounts so that an accurate picture can be gleaned of...