On the other hand, rising WIP inventory isn’t necessarily bad if sales are increasing even faster amid strong customer demand. Manufacturers account for WIP on the balance sheet as a current asset because they expect the products to generate revenue once they are completed and sold. Goods that are completed are counted as finished goods inventory, meaning they are ready for sale. WIP inventory is typically found in manufacturing environments where multiple products are processed before being sold or used. Tracking this inventory helps you manage costs within your production process. For further assistance on product and supply chain manufacturing, contact Qodenext today. Accounting strategies for tracking WIP and other…