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Former Member
Dec 12, 2012 at 01:08 AM

wip and variance calculation and settlement

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hi,

i have the scenario below for wip and variance of production order settlement. need your kind advice.

to produce 100 pieces.

1)

month 1 - only able to produce 30

during month1 settlement, the settlement will settle 70 as wip.

dr wip 70

cr change of wip 70

variance counted, say 2 (variance base on 30 pieces produced), but no variance posted.

correct?

2)

month 2 - only able to produce 50

during month2 settlement, the settlement will settle 20 as wip.

dr wip 20

cr change of wip 20

variance counted, say 3(variance base on 50 pieces produced), but no variance posted.

correct?

3)

month 3 - produce the rest of 20 and teco

during month3 settlement, the settlement will reverse wip

dr change of wip 90

cr wip 90

and variance counted, say 2, (variance base on 20 pieces produced), and posted.

dr variance 7

cr cogm 7

correct?

thanks