A control account that a manufacturing company uses to present totals of similar items related to cost of production (direct and indirect expenses). It is debited with the total cost of production, which includes direct materials, direct work expenses, direct expenses, production overhead recovered, whereas it is credited with the amount of finished goods completed and transferred.

Work-in-progress (WIP) control account presents the total amount of work-in-progress (WIP) at any time. The balance of this account reflects the total balance of jobs (production works), which are in progress as per individual jobs accounts (in a subsidiary ledger).

This account is impacted by certain sources of entries including goods received notes, materials requisitions notes transfer notes, bill of materials, wages abstracts, etc.