This final work provides a theoretical presentation of the conceptual definition of inventories, where their purpose and role, types, and the recognition and measurement of inventories are explained. The work is focused on stocks of raw materials and materials, especially on their classification, storage, accounting records and documentation in dealing with stocks. The methods of reporting inventory at actual purchase cost and at planned purchase cost are explained. The subject of this final paper is to conceptually determine what stocks are, then to explain the purpose and role of stocks. After that, explain the types of stocks and state the recognition and measurement of stocks according to Croatian Financial Reporting Standards 10 and International Accounting Standards 2. The concept of stocks of raw materials and materials will be explained and their classification, how they are stored, accounting records of stocks will be explained and documentation in dealing with supplies. In the last unit, the methods of reporting stocks of raw materials and materials will be explained, and the methods of reporting at actual cost will be explained. Procurement and according to the planned cost of procurement, and the explanation of the weighted average price method and the FIFO method. The aim of this paper is to explain the concept of inventory as well as possible and to expand knowledge about the inventory of raw materials and materials and to study the methods of reporting the inventory of raw materials and materials.