CMA/FM Tools || How to Calculate Closing stock (Value of Stock Raw Material) in CMA

How to Calculate Closing stock (Value of Stock Raw Material) in CMA:

Closing stock or inventory is the amount that a company still has on its hand at the end of a financial period. This inventory may include products that are getting processed or are produced but not sold. On a broad level, it includes raw material, work in progress, and finished goods -the units of closing stock help in determining the total amount.

Formula:

(Purchase + Opening Stock) * (holding period) / (holding period+360)

Step 1:

Open the CMA/FM Tools software, go into Transactions → Holding Period option given in menu bar.

Step 2:

Now enter Closing Inventory Holding Period Days and click on auto calculate button

Step 3:

Now go into Transactions → Profit and Loss a/c option given in Menu bar and click on Opening Stock of Raw Material

Step 4:

Now enter Opening Stock of estimated year .

Step 5:

Now Click on Closing stock and check mark on "auto calculate" option and save.

Hope this Helps.