Define: Work-In-Progress

UK Accounting Glossary

Definition: Work-In-Progress

Quick Summary

Cost of partly completed goods or services, intended for completion and recorded as an asset.

What is the dictionary definition of Work-In-Progress?

Dictionary Definition

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.

Full Definition

Work-In-Progress FAQ's