- 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
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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