How to Record Material Handling Pool Costs
Allocating indirect costs associated with purchasing, receiving, and storing contract-specific materials.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| WIP - Material Handling Burden | Asset | 12,500.00 | - |
| Indirect Pool - Material Handling | Expense | - | 12,500.00 |
💡 Accountant's Note
In accordance with CAS 418, material handling costs are pooled and allocated to contracts based on a logical base, such as total material value, to ensure equitable distribution of overhead.
Practitioner & Systems Framework
💻 ERP Architecture
Configure the cost accounting module to apply a percentage-based burden upon material receipt/issue.
⚠️ Audit Flags
Inconsistencies between the allocation base and the actual pool activities during a DCAA audit.
📄 Required Documentation
Disclosure Statement (CAS) and monthly indirect rate calculation worksheets.
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Discussion & Community Questions
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