RAJA P M ("Do the Right Thing...!!!") (128091 Points)
03 July 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178732 Points)
Replied 03 July 2017
A method suggested by ICAI....... attached
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 03 July 2017
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 03 July 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178732 Points)
Replied 03 July 2017
Yes, there are simpler steps for estimations, but follow the link for better understanding.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178732 Points)
Replied 03 July 2017
1.Divide the total production costs for the period by the total number of equivalent units produced to determine your cost per unit. Multiply the cost per unit by the equivalent units sitting in work-in-process inventory at the end of the period to calculate the value of ending WIP inventory.
2. The calculation of ending work in process is:
Beginning WIP + Manufacturing costs - Cost of goods manufactured = Ending work in process
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 03 July 2017
Above 2nd option is Then How to calculate purchase and sales details and WIP
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178732 Points)
Replied 03 July 2017
Its identical formula as of closing stock calculation in trading.
ie. Cls. Stock = Opening stock + purchases - sells (of stocks) ....
Here sells gets replaced by goods ready........ and purchases by (input raw material+ other costs).......
So, Closing WIP = Op. WIP + (input cost of raw material+ other cost of production) - cost of ready goods.
Hope you would have got it.... Think...
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 03 July 2017
Yes Sir.,
I got it... Cost of ready goods means Finished Goods.
Am I right Sir...?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178732 Points)
Replied 03 July 2017
Yes, U R Correct...........
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 03 July 2017
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