

Ill 



\ alu sical property of every kind. This 



tabulation and valuation of property is called an 

 invcnto: 



//'//,;/ the Inventory Should Cover. An inven- 

 tory must cover the following main classes of 

 physical assets: 



a. Plant real estate, buildings, c these 



;>crly rccon: . can be inventoried in 



a vc rt time. 



b. Kquipment power plant, power transmis- 

 . piping, wiring, machinery, patterns, jigs, 

 .res, and special tools. These items are usu- 

 ally carried on permanent card records, one card 

 for each item. These cards give the name and 

 symbol of the item, the department and location 



used, the maker and the maker's serial 

 number (if any), the date installed, and the dcpre- 

 .itc. with any necessary remarks. On the 

 backs of the cards may be carried the date of pur- 

 chase and the purchase value; also the cost of 

 freight and of installing the machine in place, of 

 permanent attachments and improvements, if any 

 have been made, and of repairs. These give the 



I cost to date. When the depreciation is 

 charged off from this, the present value of the 

 machine for inventory purposes is known. The 



:c of patterns as an asset is very uncertain. It 

 is the general practice to charge off special pat- 

 terns made for particular orders. Standard 

 patterns, on the other hand, have a very real value 

 but arc subject to heavy depreciation. In con- 

 servative practice, patterns arc inventoried at a 

 proportion of their original cost. 



