In our plant, factory supplies are held in consignment until issued. Once issued, these items are expensed in the system, and generally used in a short period of time. The timing of month-end results in additional expense incurred since the supplies are issued in bulk and if issued too close to month end there is still a remaining quantity on hand, In some cases, the value on hand is substantial. There are a couple ways I am thinking about bringing the supplies back to the balance sheet, 1. journal entry, or 2. a miscellaneous receipt into a "other inventory" subinventory account.
My question to readers are: how do you handle like material that is not consumed in the month?
My question to readers are: how do you handle like material that is not consumed in the month?