The Importance of a Work in Progress The workinprogress inventory towards the conclusion of the project is crucial for many reasons. Because WIP is an asset, failing to calculate it and include it on the balance sheet may lead to an undervakuation of total inventory and an overvaluation of cost of goods. Managers may benet from knowing how much work is in progress. A high WIP may suggest that the manufacturing process isn't running properly and that bottlenecks are there. Managers can detect and eliminate such issues by monitoring WIP