In this final paper have been analyzed the accounting work of purchasing, managing and issuing inventory of raw materials from the storehouse to the work-in-process production. Inventories by types have been analyzed, the purpose of their keeping is defined, accounting documents that are generated in raw material, records in the business books, and the methods of calculation and measurement of inventories are examined in accordance with International Accounting Standards and Croatian Financial Reporting Standards. Accounting policies have been established and accounting standards have been analyzed which, in accordance with the Accounting Act, are permitted to be applied in Croatia for inventory calculation. The final paper was written to determine the advantages and disadvantages of legally permitted methods of calculation by the FIFO method (first in - first out) and weighted average method and to establish the existence of significant deviations in the application of these methods in practice. In the practical part of the paper, it is shown an example of accounting of incurred bookkeeping events related to procurements of raw materials from a non-member state of the European Union and procurement procedure by FIFO method and weighted average method to determine differences in the calculation. At the same time, the differences that result in the financial statements (balance sheet and income statement) are determined using the above methods with additional disclosures. In the conclusion, the results and observations are made by comparison and analysis the two methods by providing the most appropriate method for use in practice from the point of view of the business entity.