A manufacturing business would have, at the beginning and end of each financial year, the following stocks:
Accounted for when calculating the cost of raw material used in Manufacturing Statement.
These are goods ready for sale, accounted for in trading account when calculating cost of goods sold.
Work in Progress
These are goods that have been partly processed so, that they are, at the time of annual stocktaking, neither in the form of raw material nor in finished product state. They are also called Work in Process, or Partly finished goods. Accounting treatment of this stock is explained in work in progress.