FORD MOTOR CO | 2013 | FY | 3


INVENTORIES

All inventories are stated at the lower of cost or market. Cost for a substantial portion of U.S. inventories is determined on a last-in, first-out (“LIFO”) basis. LIFO was used for 20% and 18% of total inventories at December 31, 2013 and 2012, respectively. Cost of other inventories is determined by costing methods that approximate a first-in, first-out (“FIFO”) basis.

Inventories were as follows (in millions):
 
December 31, 2013
 
December 31,
2012
Raw materials, work-in-process, and supplies
$
3,613

 
$
3,697

Finished products
5,058

 
4,614

Total inventories under FIFO
8,671

 
8,311

Less: LIFO adjustment
(963
)
 
(949
)
   Total inventories
$
7,708

 
$
7,362


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