Goods In Process

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:

Goods In Process



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.

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RELATED FAQS
  1. How is work in progress (WIP) typically measured in accounting?

    Understand what work in progress is and why a company would have this on its financials. Learn how work in progress is typically ... Read Answer >>
  2. What is the difference between work in progress (WIP) and finished goods in accounting?

    Learn about the key features and differences between work in progress (WIP) and finished goods in terms of financial accounting ... Read Answer >>
  3. How can I calculate funds from operation in Excel?

    Understand how the terms ''work in progress'' and ''work in process'' are used interchangeably to refer to items in the middle ... Read Answer >>
  4. On which financial statement does a company list its raw material costs?

    Discover what items are raw materials, how raw material costs affect businesses, and where these costs are recorded on a ... Read Answer >>
  5. Why is work in progress (WIP) considered a current asset in accounting?

    Find out why accountants consider work in progress (WIP) to be a current asset on the balance sheet for financial accounting ... Read Answer >>
  6. What is the formula for calculating inventory turnover?

    Learn about the inventory turnover ratio, how it is calculated and what this efficiency metric tells businesses about their ... Read Answer >>
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