1. Controlling and Costing Materials
Controlling and Costing Materials is the part of materials management
Effective materials management is essential in order to
provide the best service to customers,
(2) produce at maximum efficiency, and
(3) manage inventories at predetermined levels to stabilize investments in inventories.

2. materials management
The discussion of materials management deals with:
Procedures for materials procurement and use.
Materials costing methods.
Cost of materials in inventory at the end of a period.
Costing procedures for scrap, spoiled goods, and defective work
Summary of materials management

3. Procedures for Materials Procurement and Use:
procurement and use of materials usually involves the following steps:
Engineering and planning determine the design of the product, the materials specifications, and the requirements at each stage of operations. Engineering and planning not only determine  the maximum and minimum quantities to run and the bill of materials for given products and quantities but also cooperate in developing standards where applicable.
The production budget provides the master plan from which details concerning materials requirements are eventually developed.
The purchase requisition informs the purchasing agent concerning the quantity and type of materials needed.

4. Procedures for Materials Procurement and Use
The purchase order contracts for appropriate quantities to be delivered at specified dates to assure uninterrupted operations.
The receiving report certifies quantities received and may report results of inspection and testing for quality.
The materials requisition notifies the storeroom or warehouse to deliver specified time or is the authorization for the storeroom to issue material to departments.
The materials ledger cards record the receipt and the issuance of each class of materials and provide a perpetual inventory record.

5. Procedures for Materials Procurement and Use
accounting and controlling procedure involved in the procurement and use of materials. To understand the detailed procedure of purchasing, receiving stocking, and using materils need some lonk:
Purchases of productive material.
Purchases of supplies, services, and repairs.
Materials purchasing forms.
Receiving materials
Cost of acquiring materials.
Storage and use of materials.
Issuing and costing materials into production.
Materials ledger card--perpetual inventory

6. Materials Costing Methods
The ultimate objective in cost accounting is to produce accurate and meaningful figures. These figures can be used for purposes of control and analysis and eventually matched against revenue produced in order to determine net operating income.
The more common methods of costing materials issued and inventories are:
First-in-First-Out (FIFO) Costing Method
Average Costing Method
Last-in-First-Out (LIFO) Costing Method
Other Methods-Month end average cost, last purchase price or market price at date of issue, and standard cost.

7. Cost of Materials in Inventory at the End of a Period:
When the cost basis is used in costing inventories for financial statements and income tax returns, the sum total of the materials ledger cards must agree with the general ledger materials control account which, in turn, is the materials inventory figure on the balance sheet.

8. Cost of Materials in Inventory at the End of a Period
costing materials issued is the method used for assigning dollars to inventory.
Inventory valuation at cost or market whichever is lower
American Institute of Certified Public Accountant (AICPA) cost or market rules
Adjustments for departures from the costing method used
Inventory pricing and interim financial reporting
Transfer of materials cost to finished production
Physical inventory
Adjusting Materials Ledger Cards and Accounts to Conform to Inventory Accounts

9. Costing procedures for scrap, spoiled goods, and defective work:
Generally, manufacturing operations cannot escape the occurrence of certain losses or output reduction due to scrap, spoilage, or defective work management and the entire personnel of an organization should cooperate to reduce such losses to a minimum. As long as they occur, however, they must be reported and controlled.
Scrap and waste
Spoiled goods
Defective work

10. Summary of Materials Management
Materials managers are constantly confronted with these problems and requirements:
Inventories account for a large portion of the working capital requirements of most businesses. This fact makes materials or inventory management a major problem requiring constant attention by all three management levels (top, middle and low).
At present, the problem of materials management has become even more acute due to market conditions and inflation.

11. Summary of Materials Management
Effective materials management and materials control is found in an organization in which individuals have been vested with responsibility for, and authority over, the various details of procuring, maintaining, and disposing off inventory. Such a person or persons must have the ability to obtain, coordinate, and evaluate the necessary facts and to take actions when and where needed.

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