partially completed inventory units at the end of the accounting period; for example, a table without legs also called goods-in-process. In ABSORPTION COSTING, work-in-process is valued at the total cost to process it, including direct material, direct labor, and factory overhead (fixed and variable). In DIRECT COSTING, work-inprocess is valued at only the variable costs to produce it, consisting of direct material, direct labor, and variable overhead. Ending work-in-process is shown as a current asset in the balance sheet. Beginning and ending work-inprocess units are shown in the cost of goods manufactured schedule of the income statement.