MANAGEMENT

Detailed explanation-1: -Goods-in-process is part of an inventory account on the balance sheet of a manufacturing company. It relates to partially completed goods that are somewhere in the manufacturing process and not yet ready for sale. Goods-in-process is also known as “work-in-process” or “work-in-progress."

Detailed explanation-2: -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.

Detailed explanation-3: -To calculate the WIP precisely, you would have to count each inventory item and determine the valuation accordingly manually. Fortunately, you can use the work-in-process formula to determine an accurate estimate. It is: Beginning WIP Inventory + Manufacturing Costs – COGM = Ending WIP Inventory.

Detailed explanation-4: -Inventory is a current asset account found on the balance sheet, consisting of all raw materials, work-in-progress, and finished goods that a company has accumulated.