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.