In real estate, WIP refers to a project in progress.
It is a term that refers to raw materials, labor and overhead costs incurred for products that are in various stages of the production process.
WIP also reflects the value of the products in a real estate project to be completed or in stages prior to completion.
In addition, WIP is a component of the inventory asset account in the balance sheet. These costs are then transferred to the finished goods account, and finally, to the cost of goods sold (COGS).