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AE1221

Work-in-Process Inventory - Unrestricted

Work-in-Process Inventory - Unrestricted measures the amount of unrestricted Work-in-Process Inventory at a given time at all locations included for reporting. Unrestricted implies the inventory is recorded as owned, current, in good order and available for immediate use.

Notes

Work-in-Process Inventory - Unrestricted may be reported by value or volume depending on purpose. Volume-based reports may overstate the importance of inventories of low-value products. Value-based reports may understate the implications on the need for storage space or orders needed to deplete the inventory.

Valuation of WIP inventory is generally at cost of materials plus production costs (Compare to COGS). The practice of Backflushing generally eliminates or significantly reduces the value or volume reported in WIP Inventory.

For benchmarking purposes Work-in-Process Inventory - Unrestricted may be measured as a percentage of total Work-in-Process Inventory (Unrestricted + Restricted + Blocked).

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Hierarchy

IDNameLevelx
AE122Days of WIP Inventory3AE122
AE1221Work-in-Process Inventory - Unrestricted4AE1221
Work-in-Process Inventory - Unrestricted Days Of WIP Inventory 51221 4 WIP, Inventory, Unrestricted, Supply chain, Asset, Efficiency The amount of unrestricted Work-in-Process Inventory at a given time at all locations included for reporting. Unrestricted implies the inventory is recorded as owned, current, in good order and available for immediate use