Inventory is a very important asset for any company. It is defined as the array of goods used in production or finished goods held by a company during its normal course of business. There are three general categories of inventory, including raw materials (any supplies that are used to produce finished goods), work-in-progress (WIP), and finished goods or those that are ready for sale.

As noted above, inventory is classified as a current asset on a company's balance sheet, and it serves as a buffer between manufacturing and order fulfillment. When an inventory item is sold, its carrying cost transfers to the cost of goods sold (COGS) category on the income statement.

questions

1.Raw materials or parts used, direct work, and assembling above are costs that are remembered for a completion work in progress stock for most assembling processes? 2. Materials, compensations and advantage costs for laborers, subcontractor expenses and uses are frequently included as parts of a WIP for development or other long undertakings? 3. Regardless, laying out the worth of work in progress might consume a large chunk of the day, thusly organizations endeavor to decrease WIP straightaway before the finish of the bookkeeping time frame?

4.What is the equation for computing complete work underway? 5.At the decision of a month, year, or other bookkeeping period, organizations frequently figure all out work underway? 6. The completion work in progress stock is determined utilizing this WIP sum? 7. The beginning figure for the accompanying bookkeeping time frame was likewise used? 8.The beginning work in process sum + fabricating costs less the expense of delivered items is the work in process recipe?

9.Assume the ABC Widget Company has a $8000 WIP stock toward the beginning of the year. Throughout the year, the business burns through $240,000 on creation and $238,000 on finished items? 10. You have $8,000, in addition to $240,000 short $238,000, for a sum of $10,000 in work in progress stock?