Which of the following is a type of indirect inventory ?

The amount of material, a company has in stock at a specific time is known as inventory or in terms of money, it can be defined as the total capital investment over all the materials stocked in the company at any specific time.

Direct Inventories

The items, playing the direct role in the production and becoming an integral part of the finished product, are referred as direct inventories.

Inventory may be in the form of

Raw Materials are machined or processed before they are ready to be used in the assembly of finished products.

In process Inventories (Work in progress) are semi-finished goods at various stages of manufacturing.

Purchased Parts these are purchased items from outside suppliers instead of manufacturing in the factory.

Finished Goods inventories contain finished goods which are ready for dispatch to the customers.

Anticipation/ Seasonable inventories:

These inventories are indirect inventories in which items are built up to meet anticipated demand in future like Big selling forecast, government policy change, price hike, strike, shut down etc.

Indirect Inventories

These include the items essentially required for manufacturing, but not becoming an integral part of finished goods. These can be grouped as following:

Tools: These consist of

Standard tools to be used on machines such as saws, drills, taps, milling cutters, inserts, dies, etc., and
Hand tools such as hand saws, chisels, hammers, needles, spanners, etc.

Supplies:

These include materials required in running of the plant or in making of company’s products, but do not enter into the product. Supplies may include:
Miscellaneous consumable stores (such as cotton waste, toilet paper, cleaning powder, etc.)
Welding, soldering, and tinning materials (such as electrodes, gas, welding rods, solder, flux, etc.)
Abrasive materials (such as emery cloth, emery belts, sand paper, etc.)
Shipping containers (such as bags, glass bottles, cardboard boxes, drums, etc.)
Oils and greases (such as transformer oil, kerosene oil, petrol, diesel, lubricating oil, etc.)
General office supplies (such as pencils, refills, files, pins, etc.)
Electric supplies (such as cables, fuses, lamps, etc.)
Printed forms (such as envelopes, letter heads, enquiry forms, purchase order forms, etc.)

Machinery Spares:

These are the materials required in maintenance machines, e.g., bearings, belts, oil seals, springs, etc