Question

How closing stock is valued and shown in the final accounts?

Answer 1

closing stock is the amount of inventory that a business still has on hand at the end of reporting period .The included raw materials , work in process and finishing the goods inventory .The amount of closing stock can be ascertained with a physical count of the inventory .It can also be determined by using a perpetual inventory system and cycle counting to continually adjust inventory record to arrive at ending balance . I

the amount of closing stock is used to arrive at the cost of good sold in a periodic inventory system .

opening stock + purchases- closing stock = cost of sold goods ...