Work In Progress - WIP

See: Work-in-process Inventory.

Work in progress is used today in many, more "casual" contexts, but the OG use of the term is from the supply-chain management sector. Work in progress is used to describe goods that are partially made, but not yet complete. If these partially made goods had their own smartphones with Facebook on them, “work in progress” would be their status.

Their relationship status with the factory? “Complicated,” predictably, since they’re glad they are being made, but are aware they’re not done yet, so….that’s awkward. Work in progress, or WIP costs, are put on the balance sheet at each stage to help determine overall costs that went into making said goods. Each stage that goes into making the goods has its own WIP costs, which are all added up to get the total cost of the final good. This includes the obvious (raw materials and labor) as well as the not-as-obvious (don’t forget overhead costs).