17 – Inventories

Million €

 

December
31, 2014

December
31, 2013

Raw materials and factory supplies

 

2,814

2,573

Work-in-process, finished goods and merchandise

 

8,358

7,479

Advance payments and services-in-process

 

94

108

Inventories

 

11,266

10,160

Work-in-process, finished goods and merchandise are combined into one item due to the production conditions in the chemical industry. Services-in-process primarily relate to services not invoiced as of the balance sheet date.

Inventories are valued using the weighted average cost method. Impairments are reversed if the reasons for the impairments no longer apply.

Cost of sales included inventories recognized as an expense amounting to €43,841 million in 2014, and €43,982 million in 2013.

In 2014, a write-up of inventory in the amount of €2 million was recognized, whereas in 2013, an expense arising from valuation allowances amounted to €16 million.

Of the total inventory in 2014, €1,320 million was valued at net realizable value (2013: €1,173 million). In alignment with harmonization measures relating to the subsequent measurement of inventory in the BASF Group, the amount of inventory measured at net realizable value was reassessed.