How to record workin process?

Answer 1

To record work in process (WIP), start by tracking the costs associated with materials, labor, and overhead for partially completed products. Use a job order costing system or process costing system, depending on your production method, to allocate these costs accurately. Update WIP accounts regularly in your accounting system as production progresses, ensuring that any transfers to finished goods are properly documented. This provides an accurate view of production efficiency and inventory levels.