Process Costing and WIP
13 September 2012
In a previous study zone feature July 1003 I considered the fundamentals of process costing. This article follows on and explores the valuation of work-in-progress.
Students at the Intermediate Stage need to develop competence in the valuation of work-in-progress in relation to process costing and the concept is included in the Unit 6, Recording and Evaluating Costs and Revenues.
Stocks and work-in-progress
The valuation of work-in-progress involves the concept of equivalent units.
These are a notional quantity of completed...