A warg as refered to in The Hobbit is a particularly evil type of wolf. Wargs and goblins often help each other with wicked deeds.
Wargs, especially those of the Hobbit, were known to speak in their own language, and so they were sentient beasts, like the crow Roac and the Thrush. There is not too much description about the Wargs in Tolkien's works besides the fact that they were like wolves (often called by that name as well). However, it is interesting to note that a spell Gandalf one time uses in LOTR, when translated, calls the attacking Wargs "ngaurhoth" (werewolves). Thus, it is possible that the Wargs of The Hobbit and The Lord of the Rings were the werewolves referred to in Tolkien's Silmarillion.
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The same way he describes them in Lord of the Rings; happy, carefree, silly little people with curly mops on their heads and big hairy feet! They also apparently have quite the streak of endurance, according to Gandalf, Aragorn, and others.
Wargs are what the orcs use as mounts; they are a bigger and fiercer version of our common wolves.
wargs
It was the Battle of Five Armies. The armies were the humans, elves and dwarves against the wargs and the goblins.
Chapter 17, The Clouds Burst.
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That will depend on what version you have. It is used in Chapter 1 and is about page 6 or so when Bilbo complains about the dwarves knowing what he has in has larder.