Work in progress, also known as work in process, is usually 澳洲幸运5官方开奖结果体彩网:measured and🍎 categorized as a current a💙sset or a long-term asset on a company's balance sheet, depending on how the asset will be u🍸sed.

Work in Progress

Work in progress can be thought of as 澳洲幸运5官方开奖结果体彩网:inventory that's still on the factory floor. Manufacturing the goods has started but hasꦐ 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官方开奖结果体彩网:raw materials that have yet to be put into manufacturing use but is not more valuable than a company's finished goods or finished inv🐈entory ready for sale. In essence, work in progress inventory is the middle ♔stage of the production process between raw materials and the finished product.

Accounting for Work in Progress♔ on 𝐆Financial Statements

Work in progress inventory is accounted for as an asset on a company's 澳洲幸运5官方开奖结果体彩网:balance sheet, similar to raw materials or inventory. The 澳洲幸运5官方开奖结果体彩网:general ledger account used to track work in prog꧋ress is the 𓆏work 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 done on the work in progღress inventory, assign any overhead costs associated with it, and then record the asset entry as a summation of these costs.