Learn Inventory Management with Tally training in Chandigarh

Tally Training In Chandigarh : Let’s Become aware of inventory

Management

Today, we will discuss about Inventory management with Tally Training in Chandigarh

Inventory Management : The dictionary meaning of inventory is ‘stock of goods’. The word
fund is understood individually by various authors. In accounting language it may mean
stock of expert goods only. In a manufacturing concern, it may include raw real work in
process and stores, etc.

International Accounting Standard Committee (I.A.SC) defines inventories as “ tangible
property”.

Held for sale in the ordinary course of business.
In the process of production of such sale or,
To be consumed in the process of production of goods or services for sale”

The American Institute of certified Public accountant (AICPA) defines “ inventory in the
sense of tangible goods, which are held for sale, in process of production and available
for ready consumption”.

According to Bolten S.E., “Inventory refers to stock-pile of product, a firm is offering for
sale and components that make up the product”

Elements of Inventory

Inventory includes the many things one of it is :

Raw Material : It includes direct material used in the manufacture of a product. The ambition of holding raw material is to ensure constant production in the event of
delaying consignment. The amount of raw material will depends upon the various
factors such as speed. Raw cloth are to be ordered and procured and uncertainty
in the supply of these raw material

I. Direct Material : Direct Material is the primary classification for raw materials in
manufacturing operations. It is directly related to the final product. It is only the material
that, after manufacturing processes are applied, ships out to a distributor or the final customer
. If, e.g., Company manufacture hammers, than steel would be its primary direct material.

II. Indirect Material : Indirect Material is the class of materials in the manufacturing process
that does not actually ship to the customer as part of the final product. For example, the gas
used to heat the platitude that melt the steel in the construction of bang, in an ambiguous
material. Similarly, the water that cools the metal is also an long actual

2. Work In progress : It includes partly finished goods and materials held between
manufacturing stages. It can be also be stated that those raw materials which are used
in production process but are not finally converted into final product are work-in-progress.

3. Consumables : These are the products with consumers can buy Consumables are
products that consumers buy continuous i.e, items which “get used-up” or discarded

For example : Consumables are products that consumers buy recurrently, i.e. items which
“get used-up” or discarded. For example accessible office supplies are such amount as
paper, pens, file, file , post it notes, computer disks, and toner or ink bullet. Not admitted
capital equipment such as computers, fax apparatus, and other business machines or office
appliance.

4. Finished Goods: The goals ready for sale of distribution comes under this class.
It helps to reduce the risk associated with stoppage in output on account of strikes,
breakdowns, shortage of material, etc.

5. Stores and Spares : This category includes those products, which are accessories to
the main products produced for the purpose of sale. For example, stores and spares items
are bolts,nuts,clamps, screws, etc. These spare parts are usually bought from outside or
sometimes they are manufactured in the company also.

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fast growing training institute in Chandigarh. It provide productive and quality assurance
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student placements to their successful participants. It is one of the best and optimum
institute in Chandigarh. It is used in many industries today- manufacturing, retail, banking
, airways, telecom etc.

February 27, 2018