Work in progress is the costs of unfinished goods in manufacturing, while work in process refers to materials converted to goods in a short period.

Work-in-process is considered an asset and is recorded in the inventory line item on balance sheets. It should be the smallest of the main inventory accounts, according to Accounting Tools.

If work-in-process inventory is worth $10,000 and the final value of those products upon completion is $50,000, the additional $40,000 in production costs must be accounted for as the costs are added.