If I purchase parts A & B as Raw Materials, then transfer into WIP to make part AB with labor added. The part is now a Finished Good. However, if I want to use AB in another assembly, should it be transferred into Raw Materials then back into WIP? What if I had AB manufactured complete from an outside vendor? Is it Raw Materials or Finished Goods?
USA Manufacturing Account Flow - Raw Materials, WIP, Finished Goods
- Thread starter brianhale
- Start date
Options:
Part A&B (RM) + Labor = WIP (WIP can be sold to customer as Sub-Assembly). It might be considered WIP because it might be missing the final stage of the process.
Part A&B (RM) + Labor = WIP + Part C + packing and shipping = FG (FG can be sold to customer as FG)
Not sure why type of system you have but FG can be reuse or use to build something else.
Part A&B (RM) + Labor = WIP (WIP can be sold to customer as Sub-Assembly). It might be considered WIP because it might be missing the final stage of the process.
Part A&B (RM) + Labor = WIP + Part C + packing and shipping = FG (FG can be sold to customer as FG)
Not sure why type of system you have but FG can be reuse or use to build something else.