Stock valuvation

[Pam]

Warmest greeting to all there. Hi I am new to this forum. I hope someone can advice me on the following doubt:-

I'm attached to a food manufacturing company where stock of Finish Goods and Raw Material is a important element in determining Gross Profit. At the moment our Accounts Dept is incharge of the stock valuvation which handle in system by Store supervisor. Currently the mngmt is hiring a warehouse manager who is located at the factory. Can we assign the warehouse manager to handle the stock valuvation and I just accept the fiqures given by them.

 

[Marshall]

What information will the warehouse manager have to value the inventory? If you are just counting inventory and using a typical FIFO cost allocation, it seems that his only job is to make an accurate account. If you make adjustments for obsolete or slow moving inventory, will he have the historic information to make the decision?

I don't think we have enough information to give you advice. We can just help you identify the questions you should be asking yourself.