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Supervisors in the work centers oversee the usage of raw material in production; explain why the...

Supervisors in the work centers oversee the usage of raw material in production; explain why the work centers do not keep the records of the work-in-process?

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Answer #1

Work centre :- it is the place in the factories where a sequence of the work is going on for production of goods. This is the place where the inputs undergo several process, several machines and several labour.

In work Centre the calculation of the of the cost of the production is very difficult due to the reason that all the inputs are undergo several process and some inputs may end up at processing level also.

So to calculate the cost of total work in progress the management of the organisation will observe the inputs given to the production process and how much output got from the production process.

All calculations regarding the value of work in progress will be done by comparing input given and output got from the production process. This type of evaluation is done due to the reason of the input undergo process under several machineries and several labours and it is very difficult to allocate all the cost to each and every input given to the production process.

So due to this reasons supervisors in work Centre oversee the usage of the raw material (input) in production for valuation of the work in progress or value of output got.

Due to the above said reasons the accurate valuation of work in progress cannot be valued at work centre so work centre will not keep the records of the work in progress but possibly these records are maintained by corporate office, authoinput issuance authorities and output valuation department.

As a conclusion we can say that work centre involves many production process so that supervisors oversee the usage of raw material and valuation and records of the work in progress cannot be maintained accurately in work centre but same information can be valued by comparing information from raw material issuance authorities, output maintaining department.

These are all the information required to solve the given question.

I hope, all the above mentioned information and explanations are useful and helpful to you.

Thank you.

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