What can be called work-in-progress. Work in progress: invoice. What is work in progress

Work in progress is a product that has not gone through all the stages provided for technological process... There are different methods of assessing it, which depend on the technology that the company uses. Read what exactly is considered a work in progress, how to choose methods for its assessment, how to take it into account in tax and accounting. See calculation examples and accounting entries.

What is work in progress in accounting

Work in progress (WIP) is goods or other products that have not yet been released at the reporting date, but the production cycle has already begun. The reporting date can be the last calendar day of the year. If the compilation is provided monthly reporting, then the WIP is done on the last calendar day of each month.

WIP includes:

1. Released items that are not complete.
2. Products that have not passed the acceptance test.
3. Semi-finished products or other raw materials that have already been processed, but have not yet become finished products.
4. Completed work not accepted by the customer.

The organization should independently choose a method for assessing WIP based on its technology and fix it in accounting policy for the current year. The choice of method is very important, as it determines the cost of the released product and affects corporate tax , and, as a consequence, on financial results organizations for the reporting period.

Assessment of work in progress

If you have a piece-by-piece release of products, reflect the WIP in account 20 at the actual costs. If mass or serial, use one of three methods for estimating WIP:

1. .
2. Direct cost items.
3. At the cost of raw materials, materials and semi-finished products.

Actual cost method

The method is suitable for both mass and piece production. The cost of the product includes absolutely all costs associated with the production of products (direct, general and general production costs). This method is considered to be the most accurate.

Example 1

The company produces shampoo. Within a month, it launched production of 200,000 units. In fact, 180,000 units of shampoo were released and entered into the warehouse as finished products, of which 150,000 units were sold to the buyer at a price of 32 rubles per unit. Suppose that at the beginning of the month there are no unfinished and unsold shampoo in stock.

We get that the WIP at the end of the month is 20,000 units and 30,000 unsold goods. Costs this month:

• raw materials and materials - 1,000,000 rubles;
• salary and production personnel = 2,000,000 rubles;
• depreciation of equipment - 500,000 rubles;
• general and general operating expenses (for example, salaries of management personnel, depreciation of other equipment, etc.) amounted to 700,000 rubles.

The sum of actual costs was = 1,000,000 + 2,000,000 + 500,000 + 700,000 = 3,200,000 rubles.

Therefore, the WIP at the end of the month will be = 3,200,000 rubles / 200,000 pieces * 20,000 pieces = 320,000 rubles.

Read about WIP accounting in Sistema Financial Director:

How will help: without inventory of work in progress, it will not be possible to accurately assess its cost, control the quality of accounting and fight against theft. The solution will tell you how to prepare for the inventory and how to carry it out.

How will help: the solution will tell you how to calculate the stock turnover rate of work in progress using the direct account method. Such standards are useful if it is necessary to regulate the volume of work in progress and optimize the production cycle.

Method for evaluating the cost of raw materials and semi-finished products

It is used in a short-term production cycle. Here, only the actual cost of raw materials is included in the cost of the product. All other costs are included in the cost of finished products.

Example 2

The company makes packed chocolate muffins. In the current month, 10,000 packs of cupcakes were sent to production, 9,800 packs were actually manufactured and recorded as finished products. Of which 9,500 items were sold at a price of 40 rubles per item. Material costs amounted to 400,000 rubles. It should be noted that there is no WIP at the beginning of the month.

We get that the balance of WIP at the end of the month is 200 units and its calculation will be as follows:

WIP at the end of the month = 200 units x 40 rubles = 8,000 rubles.

The calculation can be constructed in another way:

1. Share of WIP in the total amount of products in production = 200 pieces / 10,000 units * 100% = 2%
2. The share of raw materials and materials that are unfinished = 2% * 400,000 rubles = 8,000 rubles.

This method is considered accurate for material-intensive production, when the share of raw materials and materials is a significant part (say, 80–90% of the total manufacturing costs) and there is no point in wasting time on calculating insignificant amounts of other costs. It is more logical and more convenient to attribute other items of expenditure directly to the cost of finished goods. As a rule, this is typical for the food industry.

Direct cost item valuation method

It is usually used in material-intensive production. The cost of production includes only production-related costs, the list of which is directly provided for in the accounting policy of the organization. All other costs are included in the cost of the finished product.

Example 3

The company is engaged in sewing children's clothing. 8,480 rubles were spent on the production of 100 pieces of children's undershirts, including:

• a piece of cotton fabric worth 3000 rubles,
• the salary of the worker who made the product (including insurance premiums) - 5000 rubles;
• depreciation of the sewing machine 480 rubles.

At the beginning of the month, items worth 9,500 rubles were in operation. For a month, 100 undershirts were sewn, 70 pieces were released. The WIP at the end of the month will be:

WIP = (8480 rubles / 100 units * 70 units) + 9500 rubles = 15436 rubles.

Method of valuation at standard cost

It is used more often in serial and mass production. The method is based on the use of norms to account for all production costs... During recalculation, deviations of the actual costs from the standard ones may occur. If the norms change, then it may be necessary to reevaluate the WIP at the beginning of the month.

Example 4

Let's turn to the data of example 1. In order to use this method, you only need to know the total number of unfinished products at the end of the month and the standard cost price set in production. For this example, let's assume that the rate is set at 40 rubles.

Since the production of 20,000 bottles of shampoo has not been completed at the end of the month, the WIP should be estimated at 800,000 rubles (20,000 units x 40 rubles).

Transactions in accounting must be reflected in the following entries:

How to measure work in progress in management accounting

Sergey Shebek, project manager COSTKILLER.RU

When developing the rules for evaluating work in progress in management accounting, fix in the accounting policy, as:

- evaluate it at the time of recognition ( initial estimate);

- update the cost;

- to evaluate when transferring to production for further processing.

How to determine the value of an asset at the moment of recognition and upon transfer to production, when and how to update it, how to estimate WIP in management accounting, .

Which account to account for

Operations for the accounting of unfinished work are reflected in account 20 "Main production". All costs are collected on the debit of the account. At the end of the month, expenses included in the cost of finished products are debited to the credit of the account, and the accumulated amount of expenses for production that has not been completed remains unwritten on the debit of the account.

Account 20 accumulates all costs, both direct and indirect. This is reflected by the following entries:

It should be understood that the costs accumulated on accounts 25 and 26 are not written off to account 20 all at once, but only in the part that relates to completed production processes. Thus, the cost of the unfinished business is formed at the end of the reporting period.

Tax accounting

IN tax code RF also gives the concept of WIP (Art. 319). So, according to the Tax Code of the Russian Federation, unfinished items include:

• goods and products of partial readiness;
• balances of outstanding orders;
• work not accepted by the customer, which was completed on time;
• remnants of self-made semi-finished products;
• materials and raw materials (as well as semi-finished products) given into production.

WIP at the end of the month is estimated taking into account the data on the balances in quantitative terms of raw materials and materials in production, as well as the amount of direct costs for this month. The amount of balances at the end of the month is included in direct expenses of the next month. In this case, the following conditions should be observed:

1. Production costs should be related to the type of product for the manufacture of which they are produced. If this is not possible, the organization independently develops a method for allocating costs to types of products.
2. The method of allocating costs for products should be consolidated in the accounting policy for tax purposes.
3. The chosen method should be used for at least 2 tax periods.

conclusions

In work-in-progress, the organization includes the cost of materials, raw materials and semi-finished products that have not passed all stages of production, as well as work not completed or not accepted by the customer. The amount of WIP is determined at the end of the month according to the selected cost allocation method. The easiest method to calculate is based on the cost of raw materials and semi-finished products. But in any case, when choosing a WIP valuation method, one should be guided not only by the simplicity of calculation, but also by other indicators, such as financial result, accuracy of asset valuation, etc. The method chosen is described in the entity's accounting policies and for the purposes of tax accounting at least 2 tax periods are used (

Work in progress (WIP) implies products manufactured by an enterprise that have not passed all stages of processing in the current reporting period, however, already included in production. These are partially finished products. Their correct accounting serves several purposes: the calculation of the optimal cost of production, control over the volume of production and the cost of payments to workers.

What does work in progress include?

NP includes balances fixed at the end of the reporting time. Under partially finished products related to work in progress, are understood:

• A finished product that has not yet been prepared for direct sale: there is no packaging on it, no quality tests have been carried out.
• Raw materials and blanks that have been put into production or are in warehouses.
• Work started that has not yet been completed (for example, construction, installation of structures).

IMPORTANT! NP does not include defective goods, blanks and semi-finished products without minimal processing.

Assessment of work in progress

WIP products are valued in the following ways:

• At real cost... The method is usually used for the finished product. Not suitable for mass production.
• At planned cost... The method is suitable for mass production.
• By the amount of direct costs... Direct costs can be transferred to the cost of procurement or raw materials.
• At the cost of raw materials used in production... The method is relevant for a shortened technological cycle.

The choice of a particular method depends on the specifics of the given production.

IMPORTANT! The chosen valuation method should be reflected in the accounting policy of the enterprise. This is necessary for accounting.

Work in progress accounting

At the end of the reporting time, in each of the workshops of the enterprise, a turnover sheet, fixing the movement of raw materials along the entire length of the OP. Accounting is done based on data operational accounting as well as inventory. The latter is carried out by an organized commission, which includes representatives of both the accounting department and the shops. The responsibility of the members of the commission is the compilation of an inventory, which indicates the objects of work in progress and the degree of their readiness. Based on the results of the inventory, a statement is drawn up in which all the results of the procedure are indicated.

There are the following forms of work in progress accounting:

• Detail-operational... Used in mass production. In the course of it, route sheets are used, which are necessary for accounting for the movement of raw materials.
• Operational... To complete it, you need to be directly at the location of the raw material.
• Detailed... Also relevant for mass production. Within its framework, picking lists, invoices are used.

The choice of a specific method depends on the nuances of the work of the specialists conducting the accounting.

The following accounting methods are also distinguished:

• Normative... A calculation is made for each item planned cost... In this case, you need to take into account the rate of spending.
• Transverse... The object of consideration is redistribution, at which one of the stages of the production of goods takes place. The next stage is carried out at the next redistribution or the products are sold.
• Custom... The object of consideration is an order to an enterprise, involving the manufacture of a certain volume of goods. The costs will be included in the cost of the order.
• Process-by-process... The object of consideration is a separate manufacturing process. The cost price is determined by dividing monthly expenses by the number of finished objects.

Several accounting methods can be applied in one enterprise.

Used wiring

IR is allowed to be written off as losses of the company. For example, if an order for the production of goods is canceled, the posting D91-2 "Other costs" K20 will be relevant. A "stuck" NP, which appears in case of deviations from production standards, is written off. For example, this can happen under the following circumstances:

• The batch of products was found to be defective.
• It is required to liquidate all production facilities.
• A project that turned out to be unpromising is closed on an expedited basis.
• It was decided to end the joint project.

All used transactions must be confirmed by information from accounting certificate... Consider the main wiring used:

• DT91 KT20 (23, 25). Completion of the production of a product that turned out to be unpromising.
• DT20 KT10 (70-71, 69). Elimination of defects in the party.
• DT40 (43) KT20. Suitable types of products.
• DT28 KT20. Defective samples.
• DT80 KT20 (23, 26, 29). Used when terminating collaboration.

When an enterprise is liquidated, work in progress can be accounted for as follows:

• DT62 KT91... For the sale of products.
• DT91 KT20... For write-off.

NP objects are not included in the turnover of accounts. They relate to the property of the enterprise, recorded in the asset of the balance sheet on the line "Inventories".

Common mistakes when accounting for work in progress

Accountants often make the following mistakes when accounting for NP:

• Fixing NP objects on the balance sheet liability. This is incorrect, as IR refers to the property of the company. Items must be reflected in assets. The remainders are fixed in the order given accounting policy.
• Introduction of accounting for actual cost on serial production of more products. The method under consideration is not suitable for large-scale industries, since it will be possible to find out all the expenses only at the end of the month, while NP accounting is carried out earlier.

Before conducting accounting, it is advisable to familiarize yourself with the accounting policies of the company.

Work in progress tax accounting

The concept of work in progress and the nuances of working with it are set out in article 319 of the Tax Code of the Russian Federation. The valuation of NP balances is carried out at the end of the reporting period (as a rule, this is a month). The procedure is carried out on the basis of accounting records on the movement of resources and their residues. It also takes into account information on the amount of direct spending recorded in tax accounting. The order of distribution of expenses for NP can be set by the enterprise itself. It is required to be recorded in the accounting policy. The established procedure is used for at least 2 tax periods.

Sometimes direct spending cannot be attributed to the production process. In this case, it is necessary to fix the procedure for the distribution of expenses in the accounting policy, taking into account economically reasonable values. The balances of NP at the end of the reporting period are included in direct expenses of the next period. Detailed procedure for transferring an TM to the next taxable period set out in article 319 of the Tax Code of the Russian Federation.

ATTENTION! The tax payer has the right to personally determine the structure of direct spending. This permission is established by Article 318 of the Tax Code of the Russian Federation. This provision is usually used to create a similar composition of expenses for tax accounting and bookkeeping. That is, when calculating the value of NP for tax purposes, you can use the same methodology that is used for accounting. However, this is allowed only if the method used is reflected in the accounting policy of the enterprise. Despite the relative freedom, the taxpayer must adhere to certain rules. In particular, the distribution of expenses is carried out taking into account the adequacy of the expenses to the goods produced. The methods for determining this compliance are not established by law, and therefore they can be determined independently.

The crux of the problem: If the company has a work in progress, you need to take it into account when calculating the cost, because not all costs incurred in the current period can be accounted for in cost price. Part of the costs will either "hang" in the work in progress, or in the finished product in the warehouse.

This accounting methodology will help in calculating actual data for budgeting purposes in the presence of "unfinished" and finished products.

If you are interested in automating budgeting, implementing treasury or IFRS accounting, check out ours.

Since the enterprises of the group use direct costing, accounts 26, 44 are closed at 90 every month. Therefore, these costs must be collected by debit. Other income and expense accounts are collected on credit 91.1 and debit 91.2, respectively.

1. No WIP.

IN this case costs are collected on the debit of account 20. Other income and expenses are collected on accounts 91.1 and 91.2.

1. There is main production and work in progress, but there is no finished product (project activity).

In this case, the costs are collected on the debit of account 20.

At the beginning of the year, 20 accounts are collected different costs... Work in progress is calculated as the difference between debit turnover 20 and debit turnover 90 of the account.

Two options for reflection in the income statement:

The first option for WIP accounting

In order to reduce costs that are not actually written off to the cost price in a given period, it is necessary to distribute WIP in proportion to the turnover at the costs of this period (i.e., to reduce the items in the profit and loss statement by these amounts, since the cost price in this period is not included).

This WIP, broken down by article, must be recorded in the database. If we talk about 1C, then a specialized one is created in the system. In this information register, items and amounts (and other analytics, for example, "project") are indicated.

In the second month, the work in progress, broken down by line item, is summed up with the line items incurred in this period.

Example # 1

January

• Dt 20 - Cr 10 - 10,000 (materials written off)
• Dt 20 - Kt 70 - 5,000 (salary written off)
• Dt 20 - Kt 69 - 1,700 (payments to funds written off)
• Dt 20 - Kt 02 - 3,000 (depreciation written off)

Implementation

• Dt 90 - Kr 20 - 15,000 (the cost is written off)

Thus, the WIP is

DtOb 20 - DtOb 90 = 19,700 - 15,000 = 4,700

• Materials = 10,000 / 19,700 * 4700 = 2,386
• Salary = 5,000/19,700 * 4700 = 1,193
• Payments to funds = 1,700/19,700 * 4700 = 405
• Depreciation = 3000/19 700 * 4700 = 716

We also write this information into the information register in order to have data on the costs in work in progress at the end of January.

In the GTC report, we reduce these items by the amount of WIP.

February

Implementation

• Dt 90 - Kr 20 - 25,000 (the cost is written off)

Thus, the WIP for February is calculated as follows

WIP at the beginning + DtOb 20 - DtOb 90

• 15,000 (Materials) + 2,386 (WIP for materials) = 17,386
• 8,000 (Salary) + 1,193 (WIP for salary) = 9,193
• 2 720 (Payments to funds) + 405 (WIP for payments to funds) = 3 125
• 2,000 (amortization) + 716 (WIP for amortization) = 2,716

Total costs including WIP - 32 420

WIP at the end of February is: 32 420 - 25 000 = 7 420

We distribute the WIP in proportion to the costs incurred this month.

• Materials = 17 386/32 420 * 7 420 = 3 979
• Salary = 9 193/32 420 * 7 420 = 2 104
• Payments to funds = 3 125/32 420 * 7 420 = 715
• Depreciation = 2 716/32 420 * 7 420 = 622

We write this information into the information register in order to have data on costs in work in progress at the end of February.

In the income statement, we reduce the specified items by the amount of WIP.

Second option

Distribute the line "Change in costs in work in progress" in proportion to the costs incurred in the specified month.

Example No. 2

January

The conditions are the same as in the first problem, and the distribution will be the same.

February

WIP at the beginning - 4,700, turnover of account 20 during the month - 27,720.

Products sold 25,000, respectively, WIP at the end will be:

WIP at the beginning + Turnover - Sales = 4,700 + 27,720 - 25,000 = 7,420

Accordingly, the change in WIP will be = WIP at the end - WIP at the beginning = 2 720

This amount must be distributed among cost items according to their values ​​for a given period.

• Materials = 15,000 / 27,720 * 2,720 = 1,472
• Salary = 8,000/27 720 * 2 720 = 785
• Payments to funds = 2 720/27 720 * 2 720 = 267
• Depreciation = 2,000 / 27,720 * 2,720 = 196

Comparison of calculation methods

Comparative costs in the income statement for February, calculated by both methods, are shown in the table.

In general, it is preferable to use the second option, because it is simpler, although it gives a more rough estimate.

The third option

Show separately the line - "Change in costs in work in progress", which will be calculated as WIP at the end - WIP at the beginning. A positive value decreases costs (since these costs will be incurred in the next periods), a negative value increases (we incurred most of the costs this month).

Accordingly, we do not take those turnovers of account 20, which are attributed to 97 and other accounts.

1. There is work in progress, production of finished products (including stock balances).

The scheme is similar to the scheme without finished products. If there are unsold products (which have been produced), then its change is summed up with the change in "unfinished".

Example No. 3

At the beginning of the period (month), the GP in the warehouse was in the amount of 4,000 rubles.

WIP - 5,000 rubles.

Cost per month

• Dt 20 - Cr 10 - 15,000 (materials written off)
• Dt 20 - Kt 70 - 8,000 (salary written off)
• Dt 20 - Kt 69 - 2 720 (payments to funds are written off)
• Dt 20 - Kt 02 - 2,000 (depreciation written off)

Total 27 720r.

Release of finished products per month:

• 20,000 RUB (dt. 43 kt 20).

Accordingly, the balance of WIP at the end of the month will be:

DtOb 20 - DtOb 43 (for manufactured products):

• 27 720 RUR - 20,000 RUB = 7 720r.

The change in the balance of WIP for the month will be = WIP at the end - WIP at the beginning:

• 7 720 RUR - 5,000 RUB = 2 720r.

Accordingly, on this amount it is necessary to reduce costs, since some of them are for future periods.

Implementation

• Dt 90 - Cr 43 - 25,000 (the cost is written off)

When calculating the change in the balance of SOEs, you can use only the turnovers of 43 accounts.

Accordingly, the change in GP will be equal to:

WIP at the beginning (Balance Dt 43) + issue of SOE (DtOb 43) - Implementation (KrOb 43):

• 4,000 + 20,000 - 25,000 = - 1,000 rubles.

This means that all the costs that were incurred for the production of products in the past period should increase the costs of the current period, because in this period, most of the products were sold that were produced in the previous period (based on the methodFIFOor average).

Respectively, total amount on the line "Change in WIP and SO in the current period" = Change in the balance of WIP + Change in the balance of SO:

• 2 720 - 1 000 = 1720 p.

Combination of accounting schemes

You can also use two schemes.

The first scheme. Write down the change in WIP and GP in the current period in a separate line.

Second scheme. Distribute the change in WIP and WIP in the current period in proportion to the costs of this period.

Accordingly, you need to take into account that there may be still shipped products (through 45 accounts).

Account 43 can correspond with account 10 (Materials) when the GP is sent for use in the organization itself, etc. Such operations should be excluded from the calculation of the change in the GP.

GOODWILL company, 2014.

Work in progress (WIP) is inventory, and work in progress is a company's current assets. We will tell you about the cost of WIP and how it is reflected in accounting.

Read in the article:

What applies to WIP

Aspiring accountants do not always understand what is related to work in progress. Formally, it is an unfinished product that the company produces on its own. Moreover, products can be understood as any manufactured material values.

For accounting materials and raw materials not accepted for production are excluded from the unfinished composition, even if they have already been delivered to the workshop or to the site. Also, hopelessly spoiled semi-finished products are not considered WIP.

Leftovers of work-in-progress can appear in any production unit of the firm, except for segments that provide exclusively services.

Costs in work in progress are current assets, which are shown in the Balance Sheet on line 1210 "Inventories". The decoding of the indicator on line 1210 of the Balance is provided in the explanations to the statements - in table 6 "Production costs".

Assessment of work in progress in accounting

The rules for measuring the ruble value of WIP are enshrined in the Regulation, which was approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n.

The assessment of work in progress depends on its scale. In case of piece production, work-in-progress is estimated at actual costs. And in serial and mass production - in one of three ways:

1. at the cost of raw materials;
2. on production cost which can be normative or factual.

An organization that manufactures products in bulk or serially chooses the WIP assessment option and fixes it in the accounting policy.

If the technology of the main production provides for several stages of processing raw materials, then at each stage in the production a semi-finished product is formed. An organization may account for such semi-finished products in stages, or may not account for them in order to simplify the accounting process.

She needs to reflect her choice in accounting policies. At the same time, you need to know that with a simplified accounting option, the company will not have enough information about the cost of a semi-finished product after each processing.

Work in progress - not one account

On which account is work in progress recorded? Of course, in some kind of production account. But there are several such accounts, and unfinished products can be listed mainly, auxiliary, service production... Therefore, WIP is reflected in different accounts:

Debit 20 (23, 29) Credit 10 (02, 05, 23, 25, 26, 70, 69 ...)
- production costs are taken into account.

Within a month, direct costs are written off to production:
Debit 20 Credit 10 (02, 05, 23, 29, 69, 70 ...)

Overhead costs first summarize:
Debit 25 Credit 10 (02, 05, 23, 69, 70 ...),

Debit 20 Credit 25

General operating expenses, which are not immediately included in the cost price, are first summed up:
Debit 26 Credit 10 (02, 05, 69, 70 ...),

and at the end of the month they are written off to production:
Debit 20 Credit 26

At the end of the month, the costs attributable to finished production are debited from account 20, and only WIP remains on it:
Debit 43 (40, 90) Credit 20 (23, 29).

The balance on account 20 (23, 29) is the value of the work-in-progress balances.

• More about using account 20 in accounting >>
• Learn how to properly keep track of

Work-in-progress is a product or work performed by an organization that has not fully passed all stages of the technological process.

In order to answer the question whether the costs of work in progress are an asset or a liability in the balance sheet, you need to understand where the costs of work in progress are related. Since the WIP is part of current assets enterprises, then the costs are related to balance sheet assets... The types, composition and size of it depend on the industry and the scale of the manufacturing process itself.

Unfinished goods are goods and works that differ in the state of partial readiness (clause 1 of article 319 of the Tax Code of the Russian Federation). It is customary to refer to them:

• semi-finished products, raw materials that have undergone the initial stages of processing for subsequent transformation into finished products;
• goods, works or services that have not passed the stage of technical testing or acceptance from the customer;
• products without complete set.

Thus, the term is understood as the amount of costs directed to the production process for the manufacture of products, the performance of work, the provision of services, the implementation of which has already begun, but was not completed at the reporting date.

WIP Costing: Valuation Techniques

In accordance with the Order of the Ministry of Finance of the Russian Federation No. 34n dated July 29, 1998 (clause 64), accounting and evaluation of work in progress in the accounting department is carried out by means of various methods for determining the value of products. Selected method in mandatory fixed in the accounting policy of the institution.

Let's consider the main methods of cost estimation:

1. According to standards or planned cost. It is used in the manufacture of complex types of goods. The calculation is carried out according to reliable information about remnants of WIP using the current standards and data on deviations from the accepted standards. The prime cost is calculated by the formula:

WIP = quantity of WIP × unit cost of WIP.

1. At actual cost. All expenses related to the production process are accumulated. Accounting is carried out for both direct and indirect costs. Used in small-scale production. The prime cost is calculated as follows:

C fact. = direct costs + general production P + general economic R.

1. Raw materials - based on the price of raw materials. It is used in a material-intensive production process. The main costs are directed to the purchase of materials.

Considering the methodology for estimating work-in-progress, it is also necessary to mention the rate of increase in costs in work-in-progress, the formula for which will be presented below.

The growth rate characterizes the increase in costs for each unit of production in the process of passing through a full production cycle... With its help, you can determine the dynamics of the growth of certain costs included in the WIP.

K rise = From unit of production WIP / total costs of the production process.

Work in progress: transactions

WIP accounting is kept on account 20 "Main production". Debit turnover illustrates the costs of the production cycle. At the end of the reporting month, the actual cost of manufactured products is written off at CT 20. The debit balance on account 20 reflects the amount of WIP.

Consider the basic accounting records:

• Dt 20 Kt 10, 23, 25, 26 - accounting for the costs of manufacturing goods;
• Дт 40, 43 Кт 20 - writing off the cost of goods, works, services performed;
• Dt 91.2 Kt 20, 23, 25, 26 - write-off of work in progress for losses.

In the event that it is planned to sell construction in progress, the accounting entries will be as follows:

• Dt 62 Kt 91 - accounting for sales proceeds;
• Дт 91 Кт 68 - VAT accrual at the moment of object realization;
• Дт 91 Кт 08 - offset of construction according to the value of the unfinished object;
• Дт 51 Кт 62 - reflection of the buyer's payment.