What Is a Work-in-Progress (WIP)? 

The term work-in-progress (WIP) is a production and supply-chain management term describing partially finished goods awaiting completion. WIP refers to the raw materials, labor, and overhead costs incurred for products that are at various stages of the production process. WIP is a component of the inventory asset account on the balance sheet. These costs are subsequently transferred to the finished goods account and eventually to the cost of sales.

WIPs are one of the components of a company’s balance sheet. The WIP figure reflects the value of those products in intermediate production stages. This excludes the value of raw materials not yet incorporated into an item for sale. The WIP figure also excludes the value of finished products being held as inventory in anticipation of future with One click of Plexus Engine.