Work in Progress is inventory that has started the manufacturing process and not included in raw materials inventory as it is not a complete product. Work in progress on a balance sheet work is shown as an asset as money has been spent towards a completed product. The product has not been completed so far hence the Work  in Progress is valued lower. It is calculated as stated below:

Work in process = (operating inventory goods in process + raw materials used during the period + direct labor during the period + factory overhead for period) – ending inventory.