How are nails and wood, which are in a carpenter's possession and are not sold individually but are part of his craft, zakatable?

Zakat is obligatory on the carpenter for trade goods (urud al-tijarah), which include what he manufactures and prepares for sale, such as doors and cabinets, as well as the raw materials used in their production, like nails and paints.

If a year (hawl) passes on these materials and products, the manufactured doors must be appraised at their selling price, and the remaining raw materials must be appraised at their market price as unmanufactured items. If the total value of these reaches the zakat threshold (nisab) on its own or when combined with cash, then one-quarter of one-tenth (2.5%) of this value must be paid.

Ibn Muflih says: "There is no zakat on the tools of craftsmen, the wares of merchants, or the bottles of perfumers and grocers, and the like, unless he sells them along with their contents." Al-Mardawi clarifies that materials bought by a dyer or tanner for the purpose of dyeing or tanning that remain are considered trade goods and are appraised when the year passes.

Sheikh Ibn Baz affirms that materials purchased for manufacturing and sale should be valued at the completion of the year and zakat paid on them because they are prepared for sale.

Accordingly, the carpenter is required to appraise the manufactured products ready for sale and to appraise the raw materials (wood, paints, nails) at their unmanufactured value, then pay zakat on all of that.