Fundamentals of Accounting Essay Example for Free

Fundamentals of Accounting Essay For â€Å"Goods for Sales† inventory is usually divided into 1. Raw Materials : a) Natural Raw Materials: Cotton, Wools and etc. b) Synthetic Raw Materials: Acrylic, Viscose, Nylon, Polyester, etc. 2. Work in Process (WIP) : It’s starting with making Fibre from raw materials (Natural and Synthetic). Following by the process of spinning with the produced Fibre and come out with Yarn as the final product in spinning. Furthermore, Yarn will be processed into Grey Fabric by the process of weaving. Lastly, Processed Fabric is to be done from Grey Fabric. Processed Fabric will be used for Technical Textiles, Readymade Garments and Home Textiles. These products will contribute to further production of final goods. 3. Finished Goods : Finished goods will be categorised under the brand of PADINI, SEED, PADINI AUTHENTICS, PCo, PDI, MIKI, VINCCI and so on. For example of finished goods are: sweater, skirt, knit vest, cotton pant, dress, shirt, belt, bag, tie, jeans, blouse, scarf, jacket, trousers, blazer and so forth. 1.2 Process of Manufacturing Raw materials that can be divided into two distinct categories: those derived from natural materials (cotton, et cetera) and synthetic materials (polyester, et cetera). Fibre will be produced by compounding raw materials into one. Fibre then will undergo the process of spinning to become yarn. The production process begins with yarn purchasing and progresses through knitting, dyeing, and finishing. The processed fabric is then ready for further production. Process of Manufacturing (after processed fabric) is given below in details: No. Design It is given by buyers to manufacturers containing sketches including measurements of particular styles Manual/Computerized 02 Basic Block Basic block is an individual component of garments without any style of design Manual/Computerized 03 Working Pattern When a pattern is made for a particular style with net dimension regarding the basic block along with allowance then it is called working pattern. Manual/Computerized 04 Sample Garments After making a sample, it is sent to buyer for approval to rectify the faults Manual 05 Approved Sample After rectify the faults, sample is again sent to buyers. Manual 06 Costing Fabric Costing, Making Charged, Trimmings, Profit Manual 07 Production Pattern Making allowance with net dimension for bulk production Manual/Computerized 08 Grading Different in sizes. S, M, L, XL, XXL Manual/Computerized 09 Marker Making Marker is a thin paper which contains all the components for different sizes for a particular style of garments Manual/Computerized 10 Fabric Spreading To spread the fabrics on table properly for cutting Manual/Computerized 11 Cutting To cut fabric according to marker dimension Manual/Computerized 12 Sorting Bundling Sort out the fabric according to size and for each size make in individual bundles Manual 13 Sewing To assemble a full garments Manual 14 Ironing Finishing After sewing we will get a complete garment which is treated with steam ironing also several finishing processes are done for example extra loose thread cutting Manual 15 Inspection Should be approved as initial sample Manual 16 Packing Treated by Polyethylene bag Manual 1.3 Inventories Valuation Method Cost is determined using the first-in-first-out method for Padini Holdings Berhad for the financial year ended 30 June. p. 62 Note: *Full page copy of Financial Statement for this particular section will show at Appendix. 1.4 Amount of Closing Inventories The amount of closing inventories as reported in the financial statement for Padini Holdings Berhad was RM192, 285, 000 for the financial year ended 30 June. p. 80 Note: *Full page copy of Financial Statement for this particular section will show at Appendix. References: 1) http://www.indiamart.com/kishco-silver/products.html 2) http://crisil.com/pdf/research/CRISIL-Research-cust-bulletin_jan12.pdf 3) http://en.wikipedia.org/wiki/Textile_industry 4) http://www.bloomberg.com/quote/PAD:MK 5) http://tlc.howstuffworks.com/home/how-is-fabric-created1.htm