UK Accounting Glossary
Cost of partly completed goods or services, intended for completion and recorded as an asset.
Work In Progress (WIP) is the balance of partly finished work remaining within a manufacturing operation or a long-term contract at a given time.
It’s normally valued at the lower of cost or net realisable value, using either the average cost of valuation, the first-in-first-out cost or the last-in-first-out cost.
In the US, the term work in process is more commonly used.
Forget work in progress, because work is always in progress.
The purchaser is able to deduct before tax the acquisition cost of trading stock and work in progress.
By implementing the control of materials from purchased parts through work in progress to finished goods, manufacturers can reduce the amount of money tied up in materials.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
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This glossary post was last updated: 23rd December 2018.