on 10-17-2016 8:08 AM
Hi,
Given the WIP cost for 3 months is as follows :-
Period 1 = $5
Period 2 = $3
Period 3 = $2
If i use the previous period as the cut off period month to month the WIP will be computed as follows :-
Period 1 = $5
Period 2 = $3
Period 3 = $2
However, if i do not use the cut off period, will the WIP be calculated cumulatively as follows? :-
Period 1 = $5
Period 2 = $8 (Will period 1 WIP be reversed?)
Period 3 = $10 (Will period 1 & 2 WIP be reversed?)
If yes then will the system also do a WIP reversal month to month if i do not use the cut off period because otherwise the WIP costs of the previous period will not be reversed?
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