Every single Work Order in the system is tracked
Material input debits WIP
Labor performed debits WIP
Labor Rate Variance is identified immediately
Outside Processing Invoices debit WIP
Production Posting credits WIP and debits Inventory
Scrap Posting credits WIP and debits Scrap Expenses
Cost adjustments affect WIP and the offsetting account input by you
Work Order is completed
Indirect Work Orders are expensed when being processed
Other Work Orders create a Closing Variance to be analyzed
WIP Inventory Valuation allows you to identify and fix problems
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Job Costing of every Work Order -- be they Discrete, Repetitive, Process, Direct, or
Indirect -- and understanding their related Variances, is essential to control.
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