How to determine inventories

Inventories are company property. The following groups are distinguished: raw materials and raw materials, additional materials, ready-to-use semi-finished products, waste, fuel, containers and packaging, spare parts. As an assessment of this part of current assets in accounting, their actual cost is used, i.e. the cost of their acquisition minus VAT and other taxes.
Groups are formed depending on the role that one or another material value plays in production. Raw materials and raw materials constitute the main material part of the goods. Auxiliary materials are aids used in the maintenance of labor tools, for example, coolants or lubricants for technical equipment.
Ready-made semi-finished products are an intermediate product to be purchased, which will then be processed into finished products.Along with the source materials, this group of stocks forms the material basis of the product. Waste - this is the remnants of raw materials or materials formed during the production process.
Fuel, packaging, packaging and spare parts for the repair of worn-out equipment, in fact, are included in the group of additional materials, but they are distinguished separately. This is due to the peculiarities of their application. Fuel, in turn, is subdivided into technological (equipment), motor (transport) and economic (heating, etc.). Container is a collection of items and materials for packaging and storage of finished products, as well as the convenience of its transportation to the place of sale.
To determine the inventories, it is necessary to calculate the actual cost for each individual group. This allows you to control all stages of production, monitor compliance with the norms of consumption, timely pay off with suppliers, etc. In addition, a detailed analysis helps to identify areas and causes of useless surplus, and implement them in a timely manner.
The actual cost of inventories consists of the following financial categories:
• payments to suppliers in accordance with the concluded agreements;
• payment of information and consulting services;
• customs duties;
• taxes on a unit of material value;
• interest to intermediary organizations;
• payment of transport for delivery, including insurance costs.

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