STORAGE ACCOUNTS
59. Storage charges are usually based on a 30 day period, though sometimes for shorter periods, and any period less than a full month is charged for at the 30 day rate.
The storage is frequently charged for the exact time that goods are in the warehouse, that is, the amount is figured for each amount withdrawn. The following example demonstrates this, storage being charged on each quantity withdrawn at the rate of 10c per case per month.
| Received | Delivered | Time | Rate | Amount | |||||
|---|---|---|---|---|---|---|---|---|---|
| Nov. | 15 | 600 cs. eggs | Dec. | 10 | 100 cs. | 1 mo. | 10c | 10 | 00 |
| Jan. | 6 | 300 cs. | 2 mo. | 20c | 60 | 00 | |||
| Feb. | 14 | 200 cs. | 3 mo. | 30c | 60 | 00 | |||
| Total | 130 | 00 | |||||||
This is known as simple storage.
Another method is to charge storage for the average time at a given rate per month of 30 days. This method is most commonly used when receipts and deliveries are frequent, and is called average storage. The following example demonstrates the method.
| Date | Receipts | Deliveries | Balance | Time | Quantity Stored For One Day | ||
|---|---|---|---|---|---|---|---|
| Nov. | 15 | 600 cs. | 600 cs. | 15 da. | 9,000 | cs. | |
| Nov. | 30 | 200 " | 800 " | 10 da. | 8,000 | " | |
| Dec. | 10 | 100 cs. | 700 " | 27 da. | 17,900 | " | |
| Jan. | 6 | 300 " | 400 " | 39 da. | 15,600 | " | |
| Feb. | 14 | 200 " | 200 " | 10 da. | 2,000 | " | |
| Feb. | 24 | 200 " | 000 " | ||||
| 800 | 800 | 30)52,500 | |||||
| Average for 1 mo. | 1,750 | ||||||
| 1,750 cs. @ 10ยข $175.00 (Amt. of charges) | |||||||