ECONOMICS

Detailed explanation-1: -WIP refers to the raw materials, labor, and overhead costs incurred for products that are at various stages of the production process. WIP is a component of the inventory asset account on the balance sheet. These costs are subsequently transferred to the finished goods account and eventually to the cost of sales.

Detailed explanation-2: -Product and Period Costs in Financial Statements Manufacturing costs are recorded as an asset on the balance sheet in the form of inventory. When the goods are sold, these costs are recorded on the income statement as an expense.

Detailed explanation-3: -A job cost sheet is a document detailing all the costs incurred for the completion of a project. These costs can be documented during the project or after the job is complete. Usually, the accounting department compiles this record to: verify that expenses fell within the allocated budget. cost estimate for future jobs.

Detailed explanation-4: -Once all the individual parts are calculated and used to figure out the total cost of goods manufactured for the year, this COGM value is then transferred to a final inventory account called the Finished Goods Inventory account, and used to calculate the Cost of Goods Sold.