Explain how you can calculate manufacturing work in progress
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Ayomide
Work in Progress is inventory that has started the manufacturing process and not included in raw materials inventory as it is not a complete product. Work in progress on a balance sheet work is shown as an asset as money has been spent towards a completed product. The product has not been completed so far hence the Work in Progress is valued lower. It is calculated as stated below:
Work in process = (operating inventory goods in process + raw materials used during the period + direct labor during the period + factory overhead for period) – ending inventory.