help on Work in Progress inventory for footwear manufacturing

[CVD]

I am working on establishing work in progress inventory valuation for manufacturing footwear. May someone give advise or template

 

[simply_slmn]

Do you have standard cost established?

 

[Praz Finpoint]

The most straightforward method is standard costing but if you can track actual raw materials, labor hours and machine hours by production shifts for each batch of production, actual costing can be used as well. The reason most companies use standard costing is to budget the annual cost of production and set a target for continuous improvement and reduction in production costs.