CONTROL OF DETAIL IN INVENTORY VALUATIONS.
The author in this article focuses on the need of control of detail in inventory valuation. He insists that there is an aspect of the inventory problem which has been very largely neglected in the literature of the subject, though in practice it must be faced every time a decision is made to change the method of valuation. The problem is that how can the entries in perpetual inventory accounts be handled so as to keep the book figures for control and for detail accounts in agreement with each other, and, at the end of the period, to bring them into agreement with the inventory as priced under the various suggested methods? To bring the problem into sharpest focus for the discussion, the author considers it as applying to the raw-materials inventory in manufacturing business which operates on a job-cost basis. In those rare instances in which all raw materials can be marked when purchased with their specific individual unit costs, and charged out to production at those specific costs, the control account will be a direct summarization of the entries on the detail cards.
- DOI
- 10.2308/tar-7126983
- Volume
- 18 (4)
- Pages
- 348-354
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref