CMA Study Group

Hello Everyone, Can someone please guide me when we will consider WIP inventories and when we won't.

Hi,

You will know when to consider WIP based on the question. First problem, asks you the units to manufacture, therefore this pertains to FG inventory stage. While second question, is asking for equivalent units. So you have to work back from FG stage to WIP stage to get the answer. Carefully, analyze what is asked in the problem :) Hope my explanation helped you.

Thank you and enjoy studying. Best of Luck :)

Hello Everyone, Can someone please guide me when we will consider WIP inventories and when we won't.