(H) Conclusion

On the final note, as has been noted in the report, the inventories valuation method used by
the Nestle company is the First In - First Out (FIFO) method. To put it another way, the oldest items
in the inventories are consumed or sold first, so the closing inventories represent the latest or most
recent purchases. The amount of purchases, cost of sales and the value of closing inventories can be
computed systematically through this method. FIFO method enables us to know how many of the
inventories are the older and new ones. In light of fulfilling this assignment, as an Accounting
student, we are much benefited as we have the golden opportunity to comprehend and look into
more thoroughly about how a company valuate inventories in a right approach. Not only that, all the
group members are able to grasp the values of cooperation, team work, punctuation and
responsibility through this research.