Closing stock query

Dear all,

Please note that in our company we purchase packing materials which we debit under manufacturing expenses. However out of the total purchases/expenses, some materials are lying un-used at the end of the year for which we need to show as closing stock.

Now my query is that should we deduct the amount of closing stock from the total purchases of materials or else what will be accounting treatement of the above?

Thanks!!!!!!!!!!!!!

Basant