Inventories are valued at the lower of cost or market value. Product-related inventories are primarily maintained on the first-in, first-out method. Minor amounts of product inventories, including certain cosmetics and commodities, are maintained on the last-in, first-out method. The cost of spare part inventories is maintained using the average cost method.
Source: Procter & Gamble Co., Annual Report
Procter & Gamble Co., Statement of Financial Position, Inventory
USD $ in millions
| Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | Jun 30, 2008 | Jun 30, 2007 | Jun 30, 2006 | ||
|---|---|---|---|---|---|---|---|
 |
Materials and supplies | 2,153 | 1,692 | 1,557 | 2,262 | 1,590 | 1,537 |
|
Work in process | 717 | 604 | 672 | 765 | 444 | 623 |
|
Finished goods | 4,509 | 4,088 | 4,651 | 5,389 | 4,785 | 4,131 |
|
Total inventories | 7,379 | 6,384 | 6,880 | 8,416 | 6,819 | 6,291 |
Source: Based on data from Procter & Gamble Co. Annual Reports
| Item | Description | The company |
|---|---|---|
| Materials and supplies | Aggregated amount of unprocessed materials to be used in manufacturing or production process and supplies that will be consumed. | Procter & Gamble Co.'s materials and supplies 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. | Procter & Gamble Co.'s work in process declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level. |
| Finished goods | Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. | Procter & Gamble Co.'s finished goods declined from 2009 to 2010 but then increased from 2010 to 2011 not reaching 2009 level. |
| Total 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). | Procter & Gamble Co.'s total inventories declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level. |
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