Work in progress (WIP) is the value of work in progress in the manufacturing process, including labor, raw materials and overheads.
WIP is considered a current asset on the balance sheet.
Minimizing work-in-progress inventory before reporting is both standard and necessary as it is difficult to estimate percentage of completion for an inventory asset.
WIP is distinct from Finished Goods, which refers to a product that is ready to be sold to a consumer.