Type of inventories
2.1 Types of Inventories
Nestle (Malaysia) Berhad is a big company which produce various types of products. For example, coffee and beverages, food, milks, liquid drinks, infant nutrition, breakfast cereals, chilled dairy, ice-cream, confectionery and many other. According to the annual report 2012 of Nestle company, it shows that, the amount of inventories during 31 December 2012 is RM411,170,000, while during 31 December 2011 the amount of inventories is RM517,573,000 . After comparing both of these, year 2012 is slightly lower than year 2011. In this amount of inventories included raw and packaging materials , work-in-progress , finished goods and spare parts (consumable stores).
Raw materials are the things that use in first stage of production and normally it is natural resources (Investopedia, n.d.). In my opinion, the raw material that Nestle company using are wheat flour, palm oil, starch, wheat gluten, mineral, salt , sodium carbonate, sodium phosphate and potassium carbonate , buckwheat and flavouring . In order to produce Maggi instant noodles, these are the main raw materials. The amount of raw materials and packaging materials is RM181,714,000 at date 31 December 2012 and during 1 January 2011 the price is RM144,263,000.
Another inventories is work in progress, it is the material that has entered the manufacturing but is not yet a finished product (Investopedia, n.d). Inventories of Nestle in work in progress is the noodles that haven’t packaged , the spices powder and the sauces. The amount of work-in-progress is RM18,951,000 at date 31.12.2012 and the amount at the date 1.1.2011 is RM16,558,000.
The finished goods are material that has completely manufactured products which ready for sale and delivery to the marketplace (InvestorWords, n.d.). The finished goods are well-packed curry favour instant noodles. At date 31 December 2012, the amount of finished goods is RM189,403,000 where on date 1 January 2011 is RM202,828,000.
Spare parts are
Nestle (Malaysia) Berhad is a big company which produce various types of products. For example, coffee and beverages, food, milks, liquid drinks, infant nutrition, breakfast cereals, chilled dairy, ice-cream, confectionery and many other. According to the annual report 2012 of Nestle company, it shows that, the amount of inventories during 31 December 2012 is RM411,170,000, while during 31 December 2011 the amount of inventories is RM517,573,000 . After comparing both of these, year 2012 is slightly lower than year 2011. In this amount of inventories included raw and packaging materials , work-in-progress , finished goods and spare parts (consumable stores).
Raw materials are the things that use in first stage of production and normally it is natural resources (Investopedia, n.d.). In my opinion, the raw material that Nestle company using are wheat flour, palm oil, starch, wheat gluten, mineral, salt , sodium carbonate, sodium phosphate and potassium carbonate , buckwheat and flavouring . In order to produce Maggi instant noodles, these are the main raw materials. The amount of raw materials and packaging materials is RM181,714,000 at date 31 December 2012 and during 1 January 2011 the price is RM144,263,000.
Another inventories is work in progress, it is the material that has entered the manufacturing but is not yet a finished product (Investopedia, n.d). Inventories of Nestle in work in progress is the noodles that haven’t packaged , the spices powder and the sauces. The amount of work-in-progress is RM18,951,000 at date 31.12.2012 and the amount at the date 1.1.2011 is RM16,558,000.
The finished goods are material that has completely manufactured products which ready for sale and delivery to the marketplace (InvestorWords, n.d.). The finished goods are well-packed curry favour instant noodles. At date 31 December 2012, the amount of finished goods is RM189,403,000 where on date 1 January 2011 is RM202,828,000.
Spare parts are