Bone

Bones are items dropped by Skeletons when killed. Bones were added in the Minecraft beta 1.2 update. 1-3 bones are normally dropped by skeletons.

Uses
Bones can currently be used to make Bone Meal, which is a fertilizer for farming and also a dye that makes wool white.

Crafting
It creates 3 bone meals when put in the crafting table.