Perishable products handled by the produce commission merchant are also stored in cold storage warehouses, both to preserve them and to hold for more favorable market conditions.
=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frequently charged for the exact time that goods are in the warehouse, that is, the amount is figured for each amount withdrawn. The following example demonstrates this, storage being charged on each quantity withdrawn at the rate of 10c per case per month.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
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. @ 10¢ $175.00 (Amt. of charges)
=60.= One of the most important records required is a storage record showing receipts and deliveries. A special form is necessary and should be adapted to the requirements of the particular class of storage business in which it is to be used.
The form illustrated is typical in that it provides for a record of storage of any class of goods handled in packages. The storage charges are always shown so that a statement of the account can be made at any time. At the end of each month the storage charges extended during the month are debited, through the journal, to the personal accounts of the owners. The total of all such storage charges is credited to a _storage account_ in the general ledger.