Let's talk about basic Production Process in Companies:

Raw Material gets converted into WIP,and WIP gets converted into Finished goods Production Process in Companies - Basics of Excise

Now, to make WIP, we need

  • Raw Material
  • Consumables
  • Store & Spars
  • Power
  • Labour

And, then the WIP (with the help of packaging material) gets converted into Finished Goods,

Which we then sell...and the remaining material is converted into scrap


  1. Tax Practical
  2. Practical Excise


Raw Material WIP Finished Goods Raw material consumables Store & spars power Labor packing Material Finished Goods Sales of Goods (Removal) Scrap

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.