Inventories Research Essay

1. sum-upIn this research, group members atomic number 18 required to choose any company from bursa Malaysia and canvas about their inventories, during this coursework, we mainly focus on the general study about inventories and the inventories of the company- Ajinamoto2. psychiatric hospitalInventories refer to a companys merchandise, raw materials, and washed-up and unfinished products which return not yet been sold. These ar considered transpargonnt assets. There are various pith of valuing these assets, but to be conservative the low rank is usually use in financial line of reasonings. The LCM rule is applied.3. capability* Types of inventoriesThere are mainly 5 types of inventories for Ajinomoto raw materials (eg. Raw husk monosodium glutamate etc.) amounting to RM34,445,868, consumables amounting to RM 4,536,693, work-in-progress amounting to RM2,374,316, and finished goods amounting RM21,445,751. These are the oddment inventories for Ajinomoto* Manufacturing proc ess.Ajinomoto uses green engine room much(prenominal) as bio-cycle technology which improves aminic acid, maximizing the usage of natural resources, such as water and energy, the above draw show the manufacturing process. The main raw materials are raw husk.* Valuation methodsAjinomoto uses burthen total method. Inventories are stated at the get of cost and net realisable value. Cost incurred in bringing the inventories to their present location and instruct are accounted for as follows * Raw materials leverage be on a weighted average method. * Finished goods and work-in-progess be of organize materials and labour and a proportion of manufacturing overheads ground on normal operating capacity.These costs are designate on a weighted average method.Net realisable value is the estimated selling price in the popular course of business less estimated costs of completion and the estimated costs necessary to gain the sale.* Amount of Closing InventoriesThe amount of clos ing inventories is RM 62,802,628. This can be acquired from the financial statement of Ajinamoto of year 20114. ADDITIONAL CONTENT* FIFO(First In First Out) is an asset-management and valuation method in which the assets acquired first are sold, used or disposed of first. FIFO may be used by an individual or a corporation. For tax income purposes, FIFO assumes that the assets that are remaining in inventory are matched to the assets that are most recently purchased or produced.* Weighted Average Cost is a method of calculating Ending blood cost. entry valuation method used where distinct quantities of goods are purchased at different unit costs. Under this method, weights are assigned to the cost price on the al-Qaeda of the quantity of each item at each price. It is also known as AVCO It takes Cost of Goods Available for Sale and divides it by the total amount of goods from Beginning Inventory and Purchases.* Taxation is a means by which governments finance their expenditure b y direful charges on citizens and corporate entities. Governments use taxation to encourage or discourage authorized economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on abode mortgage loans results in greater winding activity, and generates much jobs.5. ConclusionAfter do this research, my group members and I increased our companionship and comprehension about the companys annual report. This can help us more understand about the history for inventories. This are useful for us as a future accountants. We get more extra information that cant learn from the class. It also increase our leaders and communication skills with other group members. in any case that, before start our assignment we also learn how to build up a group successfully. We put a gobs of efforts and times in order to posit this assignment more wonderful. We sincerely hoped that our efforts is worthful.6. originhttp//www.ajinomoto.com/abou t/history/index.htmlhttp//www.ajinomoto.com/about/http//www.ajinomoto.com/ir/stock/info.htmlhttp//www.ajinomoto.com/ir/financial/financial_summary.html http//www.investorwords.com/2589/inventory.htmlhttp//www.businessdictionary.com/ description/taxation.htmlhttp//www.businessdictionary.com/definition/weighted-average-cost-of-inventory.html http//www.investopedia.com/ terms/i/inventory.aspaxzz1fSj9WniT http//www.ehow.com/ehow_radlinks_ads.html?term=Inventory+Example& duct=biz_business_management,text,suggested5&google_rt=ChBOiX2xAAdWbgriAMoOXR1TEhFJbnZlbnRvcnk http//www.agecon.purdue.edu/crd/localgov/Second%20Level%20pages/topic_inventory_tax.htm