Can anyone explain how manufacturing accounting works for KIT work orders?

I see discussion about defining items as stocking type K and line type W and having work orders created from sales order lines to assemble the kits. We would like to do that but I don't see any discussion about the manufacturing accounting for these and do you actually do a standard work order completion? Normally that would put items in stock but it also says kit items never have stock, the stock is at the component level? So seems confusing how this would work.

We want to track the labor and generate labor cost, so wouldn't that go into WIP and need to be removed upon completion? or does it work differently with a  manufactured kit?