Inventory Control and Valuation Practices of Local Cooperative Grain Elevators

Excerpts from the report: The control and valuation of grain inventories is a major problem for cooperative grain elevators. Management must periodically inspect and assess the amount of grain stored. The inventory control has special application to grain because the quality and quantity of grain can change in a relatively short time as a result of shrinkage, insect or rodent damage, hot spots, and other causes. The objectives of this study were (1) to describe various methods of inventory control and valuation, with emphasis on responsibility for administration, on methods of pricing, and on estimating and accounting for shrinkage of grain inventories; and (2) to identify the areas where different methods are used by local cooperative grain elevators within a 17-State grain-producing region.