work in progress inventory example

work in progress inventory example refers to items that are in the process of being manufactured or assembled but are not yet finished goods. These items are considered part of a company’s inventory during the production process. An example of work in progress inventory could be a factory that produces custom furniture. The raw materials, such as wood, metal, and fabric, would be considered part of the inventory until they are assembled into the final product. Work in progress inventory can include partially assembled products, materials that are being processed, and items that are awaiting further stages of production. Managing work in progress inventory is crucial for production planning and cost control.