How Do You Calculate Ending Work In Process Formula?
Manufacturing costs are a company’s direct labor and overhead costs for production. The ending work in process is the amount of inventory a company has currently being manufactured, but not yet completed on the last day of the accounting period. These numbers are internal numbers a company will keep with their inventory accounting records. To calculate the ending work in process, use the following formula. Ending work in process equals manufacturing costs plus beginning work in process minus cost of goods manufactured. Find the company’s current manufacturing costs, beginning work in process and cost of goods manufactured. For example, a company has current manufacturing costs of $500, their beginning work in process is $70 and the cost of goods manufactured equals $300. Add current manufacturing costs to beginning work in process. In the example, $500 plus $70 equals $570. Subtract the cost of goods manufactured from the number calculated in Step Two. This will calculate ending work i
