Wip

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2014 what is wip? purpose of calculating wip? impact in BS and P&L? when we show wip? please clarify my doubts.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 April 2014 Work in progress is one kind of inventory. under inventory there will be 3 categories. one is Raw materials which is form of before production and second is Finished goods which is after production. but material in the form during production is called work in progress. this also has value under inventory,. it will be shown as part of closing stock in the p&l account and under current assets in the balance sheet.