How is zakat on industry calculated, and is the annual profit added to the value of inventory and saved money when calculating zakat?

The ruling regarding zakat on what a Muslim manufactures and sells can be summarized into two situations:

1. If the Muslim buys materials to manufacture them and then sells them: Zakat is obligatory on manufactured goods and semi-finished products as trade goods, by adding their value to other assets. Zakat of one-quarter of one-tenth (2.5%) is due upon the completion of a full year (hawl) from the date of their initial purchase. 2. If a Muslim is hired to perform a specific task (the artisan): What the artisan earns is considered acquired wealth (mal mustafad). Zakat on it becomes obligatory upon the completion of a full Hijri year from the time it was acquired. It is better if he pays zakat on it along with his saved wealth.