How to Record CAS 411 Inventory Pricing
Records the valuation of material inventory for government contracts in accordance with Cost Accounting Standard 411, using a consistent method like FIFO or Weighted Average.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Raw Materials Inventory | Debit | 50,000.00 | - |
| Accounts Payable | Credit | - | 50,000.00 |
💡 Accountant's Note
CAS 411 requires contractors to have a written policy for pricing inventory and to apply it consistently to all contracts. This entry records the acquisition at the standard or actual cost per policy.
Practitioner & Systems Framework
💻 ERP Architecture
Verify the ERP inventory module is locked to the pricing method declared in the CAS Disclosure Statement.
⚠️ Audit Flags
Changes in inventory pricing methods without a formal CAS disclosure update or cost impact study.
📄 Required Documentation
Written inventory pricing policy and purchase orders matching the inventory valuation method.
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Discussion & Community Questions
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