Periodic average cost method the work order cost will maintain the WIP balance.
Summary:
The process work order is maintaining the WIP balance if the work order is completed without a recipe.
Content (please ensure you mask any confidential information):
The work order was created without ingredients, and after completing the costing process review work order cost, the WIP balance is a negative value, but after closing the work order, the unit cost is changed.
My question is in the periodic average cost method.
- If we have closed the work order, how will we allocate accounting overhead rules?
- The system is distributing the existing cost; the inventory valuation will increase.
The cost profile setup as below.
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