Formed and expanded metal raw materials an example of an expanded metal product. Components which are not part of your final product but which are consumed during the manufacturing process.

Inventory Types

For manufacturing companies raw materials inventory requires detailed budgeting and a special framework for accounting on the balance sheet and income statement.

Raw materials for manufacturing. Whereas contract manufacturing is considered a turnkey solution for clients where the contract manufacturer is responsible for. Examples of raw materials include. Toll manufacturing is often done by a raw material manufacturer to create a new product line for the company.

The toll manufacturer is assuming the risks associated with raw material planning and product manufacturing. As your orders increase you may order a ton of extra materials assuming that the more safety stock you have the better. Examples of indirect materials are glue oil cleaning supplies disposable tools light bulbs etc.

Raw materials used in the process typically include molten metal but epoxies concrete and clay are also used. Common metals used in the casting process include.