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3M Co. (MMM) | Analysis of Inventory

Inventory Accounting Policy

Inventories are stated at the lower of cost or market, with cost generally determined on a first-in, first-out basis.

Source: 3M Co., Annual Report

Inventory Disclosure

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3M Co., Statement of Financial Position, Inventory

USD $ in millions

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
chart Finished goods
chart Work in process
chart Raw materials and supplies
chart Inventories

Source: Based on data from 3M Co. Annual Reports

Item Description The company
Finished goods Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. 3M Co.'s finished goods increased from 2009 to 2010 and from 2010 to 2011.
Work in process Carrying amount as of the balance sheet date of merchandise or goods which are partially completed, are generally comprised of raw materials, labor and factory overhead costs, and which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing. 3M Co.'s work in process increased from 2009 to 2010 and from 2010 to 2011.
Raw materials and supplies Aggregated amount of unprocessed materials to be used in manufacturing or production process and supplies that will be consumed. 3M Co.'s raw materials and supplies increased from 2009 to 2010 and from 2010 to 2011.
Inventories Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). 3M Co.'s inventories increased from 2009 to 2010 and from 2010 to 2011.

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