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John Moffat.
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kashafaltaf500
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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?
John Moffat
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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.
kashafaltaf500
John MoffatViewing 2 posts - 1 through 2 (of 2 total)
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