The remaining raw materials sometimes still have economic value, but there are also those that cannot be utilized at all. However, a record of the amount or value of residual raw materials should be stored even though in reality there are no costs that can be charged to the remaining raw material inventory.
The amount of residual raw material should be traced all the time and analyzed to determine whether this is due to inefficient use of raw materials and whether this inefficiency can be partially or completely removed.
Treatment of residual raw materials is highly dependent on the selling price of the remaining raw materials. The amount obtained from the sale of remaining raw materials can be accounted for in various ways, as long as the selected alternatives are used consistently in each period.
The remaining raw materials sometimes still have economic value, but there are also those that cannot be utilized at all. However, a record of the amount or value of residual raw materials should be stored even though in reality there are no costs that can be charged to the remaining raw material inventory.
The amount of residual raw material should be traced all the time and analyzed to determine whether this is due to inefficient use of raw materials and whether this inefficiency can be partially or completely removed.
Treatment of residual raw materials is highly dependent on the selling price of the remaining raw materials. The amount obtained from the sale of remaining raw materials can be accounted for in various ways, as long as the selected alternatives are used consistently in each period.