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.
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.Rating: