DEFINITION of 'Goods In Process'
An inventory account that is usually identified on the balance sheets of manufacturing companies. Goods in process relates to the partially completed goods that are somewhere in the manufacturing process and are not ready for sale. It is calculated as:
Also known as "work in process".
BREAKING DOWN 'Goods In Process'
Goods in process is one of three manufacturing inventory classifications. It is found in between raw materials and finished goods. Goods in process differs from raw materials because it also includes some labor and overhead.