Inventories

12 Months Ended

Dec. 31, 2013

Note 4

– INVENTORIES

Inventories consist of the following:

	December 31,
	2013			2012
Raw materials	$	326,245		$	287,560
Packages		5,878			6,850
Finished goods		974,382			920,829
Low value consumables		40,954			39,466
Total		1,347,459			1,254,705
Less: impairment loss		(149,819	)		-
Inventory, net	$	1,197,640		$	1,254,705

Low value consumables represent low value and easily worn out items and are amortized on an equal-split amortization method. Pursuant to this method, half the value of the low value consumable is be amortized once used and the remaining half value is be amortized when disposed of.

During the year ended December 31, 2013 and 2012, the Company recognized $147,785 and $0, respectively, as impairment loss from inventory.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

+ References+ Details