17 – Inventories

Million €

 

December 31,
2017

December 31,
2016

Raw materials and factory supplies

 

3,255

3,107

Work-in-process, finished goods and merchandise

 

6,979

6,808

Advance payments and services-in-process

 

69

90

Inventories

 

10,303

10,005

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.

Cost of sales included inventories recognized as an expense amounting to €29,941 million in 2017, and €26,048 million in 2016.

A reversal of a write-down on inventory was recognized in the amount of €18 million in 2017 and a write-down in the amount of €43 million in 2016.

Of total inventories, €863 million was measured at net realizable value in 2017 and €836 million in 2016.