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

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  1. Tax Practical
  2. Practical Excise

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 9 years. He also provides Accounts Tax GST Training in Delhi and Pune.