wip

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
June 18, 2022 at 4:58 pm #658973
kashafaltaf500
Participant
- Topics: 29
- Replies: 10
In a production process the percentage completion of the work?in?progress (WIP) at the end
of a period is found to have been understated.
When this is corrected what will be the effect on the cost per unit and the total value of
the WIP?

i understand that the cost per unit will decrease as there will be more equivalent units as more work will be completed

can u please explain what happens to the total value of WIP?
June 19, 2022 at 1:47 pm #658992
John Moffat
Keymaster
- Topics: 57
- Replies: 54851
It is impossible to say, because the equivalent cost per unit will be lower but the % included in the valuation of the WIP will be higher.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.