244 Gas, Oil and Grease

Assets

Inventories

Synopsis

Account 244 is established to record the inventory value of Gas (fuel), Oil and Grease on hand.

Comments

A debit balance represents the inventory value of gasoline (fuel), oil, grease and similar materials (lubricants).

Note:

If gasoline is not carried in stock for resale, purchases may be charged directly to the appropriate expense account.  Bulk purchases may be charged to Account 244, Gas, Oil and Grease and internal consumption recorded as a direct relief of inventory by a charge to the appropriate expense account.

Physical inventories should be taken at each month end of the following:

·        Tires

·        Gas, Oil and Grease

·        Paint and Body Shop Materials

These inventories should be priced at the lower of cost or market values.  Any differences between book and physical count values should be adjusted through the following accounts, as applicable:

·        Acct 690, Cost of Sales - Tires

·        Acct 691, Cost of Sales - Gas, Oil and Grease

·        Acct 679, Cost of Sales - Paint and Body Shop Materials

A physical inventory of other merchandise should be taken at least once each year.  It should be priced at the lower of cost or market value.  Any difference between book and physical count values should be adjusted through Acct 692, Cost of Sales - Miscellaneous.