§ 367.1630 Account 163, Stores expense undistributed. ( a ) This account must include the cost of supervision, labor and expenses incurred in the operation of general storerooms, including purchasing, storage, handling and distribution of materials and supplies.
( b ) This account must be cleared by adding to the cost of materials and supplies issued a suitable loading charge that will distribute the expense equitably over stores issues. The balance in the account at the close of the calendar year must not exceed the amount of stores expenses reasonably attributable to the inventory of materials and supplies exclusive of fuel, as any amount applicable to fuel costs should be included in account 152, Fuel stock expenses undistributed (§ 367.1520).
( c ) This account must include the following labor items: ( 1 ) Inspecting and testing materials and supplies when not assignable to specific items.
( 2 ) Unloading from shipping facility and putting in storage.
( 3 ) Supervision of purchasing and stores department to extent assignable to materials handled through stores.
( 4 ) Getting materials from stock and in readiness to go out.
( 5 ) Inventorying stock received or stock on hand by stores employees but not including inventories by general department employees as part of internal or general audits.
( 6 ) Purchasing department activities in checking material needs, investigating sources of supply, analyzing prices, preparing and placing orders, and related activities to extent applicable to materials handled through stores. (Optional. Purchasing department expenses may be included in administrative and general expenses.)
( 7 ) Maintaining stores equipment.
( 8 ) Cleaning and tidying storerooms and stores offices.
( 9 ) Keeping stock records, including recording and posting of material receipts and issues and maintaining inventory record of stock.
( 10 ) Collecting and handling scrap materials in stores.
( d ) This account must include the following supplies and expenses items: ( 1 ) Adjustments of inventories of materials and supplies, but not including large differences that can readily be assigned to important classes of materials and equitably distributed among the accounts to which the classes of materials have been charged since the previous inventory.
( 2 ) Cash and other discounts not practically assignable to specific materials.
( 3 ) Freight, express, and similar items, when not assignable to specific items.
( 4 ) Heat, light and power for storerooms and store offices.
( 5 ) Brooms, brushes, sweeping compounds and other supplies used in cleaning and tidying storerooms and stores offices.
( 6 ) Injuries and damages.
( 7 ) Insurance on materials and supplies and on stores equipment.
( 8 ) Losses due to breakage, leakage, evaporation, fire or other causes, less credits for amounts received from insurance, transportation companies or others in compensation of the losses.
( 9 ) Postage, printing, stationery and office supplies.
( 10 ) Rent of storage space and facilities.
( 11 ) Communication service.
( 12 ) Excise and other similar taxes not assignable to specific materials.
( 13 ) Transportation expense on inward movement of stores and on transfer between storerooms, but not including charges on materials recovered from retirements that must be accounted for as part of cost of removal.
( e ) A physical inventory of each class of materials and supplies must be made at least every two years.