Report on Inventory Managment- Summer trainning

Report on Inventory Managment- Summer trainning

 

MEANING OF INVENTORY:-                                                    
Inventory is the physical stoke of goods maintained in an organization for its smooth sunning. In accounting language it may mean stock of finished goods only. In a manufacturing concern, it may includes raw materials, work-in-progress and stores etc. In the form of materials or supplies to be consumed in the production process or in the rendering of services.
In brief, Inventory is unconsumed or unsold goods purchased or manufactured.

NATURE OF  INVENTORIES :-  

 Inventories are stock of the product a company is manufacturing for sale and components  that  make  up  the  product.  The  various  forms  in  which  inventory  exist  in  a manufacturing company are raw materials, work in progress and finished goods.

RAW MATERIALS:-                   

   Raw materials are those inputs that are converted into finished product though the  manufacturing  process.  Raw materials  inventories  are  those  units  which  have  been purchased and stored for future productions.

WORK   IN PROGRESS:-                                         

These inventories are semi manufactured products. They represent products that need more work before they become finished products for sales.

PACKAGING MATERIAL:-     
Packaging material includes those items which are used for packaging of perfumery   product i.e. cap of the bottle, pump, coller,liver, box etc.

FINISHED GOODS:-                                          
  Finished goods inventories are those completely manufactured products which are ready for sale. Stock of raw materials and work in progress facilitate production. While stock of finished goods is required for smooth marketing operation.  Thus, inventories serve as a link between the production and consumption of goods.

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