Goods in Process definition. Analyzing the definition of key terms often provides more insight about concepts. Goods in process inventory can be defined as – Account in which costs are accumulated for products that are in the process of being produced but are not yet completed; also called Work in Process Inventory. Goods in process GIP in an inventory account used in a manufacturing company, used for the tracking of inventory through the production process. Inventory generally starts as raw materials, then moves to good in process, then moves to finished goods. When the inventory is sold, it is reduced from finished goods and record as an expense in the cost of goods sold account. Goods in process GIP represents inventory that has not yet been completed and the work in process account is generally backed up by job sheets or a process cost tracking system. Work in process will include direct material, direct labor, and factory overhead.
