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Inventories of Goods for Resale
Supply Inventories
Inventories
Inventories of Goods for Resale
Retail operations that keep goods on hand should maintain an inventory system that will allow them to know the purchase price of the item they are reselling in order to apply the markup to the appropriate base. The system should also allow them to value their inventory on hand.
In order to minimize the risks of loss, theft, and obsolescence, inventory balances should be kept at a minimum. If it is estimated that the value of the inventory on hand at May 31st is greater than $25,000, then the service center must report the value and a detailed listing of their inventory to the Associate Director of Financial Services by June 20th for possible inclusion in the University's financial statements. This value must also be reported to Cost Analysis and Studies as part of the annual rate package.
Supply Inventories
In the course of business, it may be necessary for the service center to maintain an inventory of supplies. In order to minimize the risks of loss, theft, and obsolescence, inventory balances should be kept at a minimum. If it is estimated that the value of the inventory on hand at May 31st is greater than $25,000, then the service center must value their supply inventory. This value and a detailed listing must be reported by June 20th to the Associate Director of Financial Services for possible inclusion in the University's financial statements. This value must also be reported to Cost Analysis and Studies as part of the annual rate package.
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