To find out the cost of materials issued from stores several methods are used. The choice of method should be based on the nature of material and the type of business. Following are some important methods, which are commonly used: 1. "First-in-First Out" Method 2. "Last-in-First-Out" Method 3. Average Price Method 4. Fixed Price Method 5. Actual Cost Method 6. [...]
After reading this article you will learn about the classification of items of store. 1. Raw Materials: These are used in the making of products, like pig iron in a steel plant, raw cotton in a textile mill. These are stored according to the type of materials. 2. Spare Parts: These are parts purchased from outside source and used in [...]
After reading this article you will learn about the records to be maintained in the stores. 1. Bin Card: This is a card which is attached to each bin, rack, shelf or other container for stores. A record of all materials entering or leaving the bin and balance of material in hand is kept in this card. These cards are [...]