The decreasing amount of raw materials and finished goods came from the company can produce and purchase less than prior year for several reasons. Firstly, iron scrap began to be lacking because there are several new competitors which made the company can purchase RM limited. Second, the company sold some raw material to customer because the company want to make liquidatioin. Moreover, this year the price of steel is decreased continuously and lowest in December 2014 which made the customers purchase steel bar from the company more than prior year 15,065 tons. So, the ending stock decreased when compared with prior year.