ABSTRACT
MANUFACTURING STOCK We have seen that problems can arise in valuing a trading company’s stock if purchase prices change during a year, but purchase invoices do show the actual cost of an item at certain points in time. But what is the ‘cost’ of an item which a company manufactures itself? Varying quantities of stock are usually left in various stages of completion at the end of each period, so one needs to value ‘work-in progress’ as well as stocks of raw materials and finished goods.
