Work in Progress

Cost Accounting

MS: Kerja dalam Proses · EN: Work in Progress · ZH: 在制品

Meaning

Work in progress (WIP) consists of goods that are still partly finished at the end of the accounting period and have not yet become finished goods. It contains the material, labour and overhead costs incurred so far. Opening WIP is added and closing WIP is deducted in the Manufacturing Account.

Example

Jati Furniture Factory has half-finished tables worth RM5,000 on 31 December. This amount is closing WIP and is deducted from the cost of production in the Manufacturing Account.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5

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