Work in process is a phase of production where the product is in the process of conversion from raw material to finished goods. The inventory figure that appears on the balance sheet includes all three forms of inventories, i.e. raw material; work in process, and finished goods inventories.
From an auditing perspective, the auditors have to perform physical inventory counts to make sure the inventories are not overstated. To verify the exact amount of work in process inventories they have to check the production reports that track the level of inventories that are under process. Normally companies try to overstate their inventories including work in the process to improve the current ratio of the company but the auditors have to make sure that the figures are accurate.
Why must Work in Process Inventory be adjusted for factory overhead applied
Refer to the data given in Exercise 1–7. Answer
“I think we goofed when we hired that new assistant controller
Weston Products manufactures an industrial cleaning compound that goes through three processing
The Devon Motor Company produces automobiles. On April 1st the company
Refer to the data for the Blending Department of Sunspots Beverages,
Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant
The Devon Motor Company produces motorcycles. During April, the company
Helix Corporation produces prefabricated flooring in a series of steps carried out
Gary Stevens and Mary James are production managers in the Consumer Electronics
