How to calculate work in progress in construction company?
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Work in progress (WIP) in construction companies is calculated by analyzing the value of labor and materials being used in the project currently, and subtracting from the value of labor and materials that have been completed. To calculate, you will need to access the project budget and identify the estimated cost for labor and materials, along with any rebates or credits.
Then, you can subtract any expenses paid for labor and materials that have already been completed from the estimated cost. The resulting figure is the work in progress for the project.