How do you calculate the ending work in process inventory?

To calculate the ending work in process (WIP) inventory, you start with the beginning WIP inventory and add the total manufacturing costs incurred during the period, which include direct materials, direct labor, and manufacturing overhead. Then, subtract the cost of goods manufactured (COGM) during the period. The formula can be summarized as: Ending WIP = Beginning WIP + Total Manufacturing Costs - COGM. This gives you the value of the inventory still in production at the end of the period.