Work in progress, also known as work in process, is usually 澳洲幸运5开奖号码历史查询:measured and💧 categorized as a current asset or a long-term asset on a c🌊ompany's balance sheet, depeꦇnding on how the asset will be used.

Work in Progress

Work in progress can be thought of as 澳洲幸运5开奖号码历史查询:inventory that's still on the 🉐factory floor. Manufacturing the goods has started but has not yet been completed and can't be categorized as inventory or finished goods.

Work in progress inventory is more valuable than 澳洲幸运5开奖号码历史查询:raw materials that have yet to be put into manufacturing use but is not more valuable than a company's finished goods or finished inventory ready for sale. In essence, work𒊎 in progr♈ess inventory is the middle stage of the production process between raw materials and the finished product.

Accountin༺g for Work in Progress on Financial Statements

Work in progress inventory is accounted for as an asset on a company's 澳洲幸运5开奖号码历史查询:balance sheet, similar to raw materials or inventory. The 澳洲幸运5开奖号码历史查询:general ledger account used to track work in progress is the work in progress inventory account.♕

All costs associated with the work in progress inventory is taken into account, including raw materials cost, direct labor costs, and factory overhead costs. When accounting for these costs in the work in progress inventory asset account, an accountant would assign all raw materials associated with the work project, compile all labor costs associated with the work do⛦ne on the work in progress inventory, assign any overhead costs associated with it, and then record the asset entry as a summation of these costs.