Question

WIP ledger balance shows​

Answer 1

WIP is a concept used to describe the flow of manufacturing costs from one area of production to the next, and the balance in WIP represents all production costs incurred for partially completed goods. Production costs include raw materials, labor used in making goods, and allocated overhead.

Answer 2

WIP ledger balance shows all the productions costs.

WIP (work in progress)

Work in progress are the materials or goods (products) that are partly finished (half done) and are waiting for their complition.

In accounting words work in progress (WIP) are current assets.

Production costs

It is generally the cost that occured while producing a product.

Production costs include :-

• Labour charges.
• Raw material.
• Genral overhead.