Stocks of a Manufacturing Concern

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on April 14, 2023

A manufacturing business would hold the following stocks at the beginning and end of each financial year: raw materials, finished goods, and work-in-progress.

An overview of how to account for these stocks is given below.

Raw Materials

Accounted for when calculating the cost of raw materials used in the manufacturing statement.

Finished Goods

These goods are ready for sale. They are accounted for in the trading account when calculating the cost of goods sold.


These are goods that have been partially processed.

At the time of annual stocktaking, they are neither in the form of raw materials nor the finished product.

Work-in-progress is also known as work-in-process or partly-finished goods.

The accounting treatment of this type of stock is explained in our article on work-in-progress.

Stocks of a Manufacturing Concern FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.