I am concerned that part of the monthly steps I do is causing our inventory value to be overstated and I am looking for what others do as part of their end of the month routine.   I run IN-L-K rept to see what our last cost was on purchased items.  Then I change the standard to match the last cost in IN-L-E.  I run the BM-G std cost rollup so that at the beginning of each month, we are seeing what our standard costs is with all of our price increases from the previous month ( Which has been crazy lately!).  I then run UT-K-F and change the avg and last costs on all our pn's to match what the standard is and this recalculates the on hand inv. value.  Am I overstating my inventory value by changing the average to last?
 
   Exp - Had 55 pcs. of a part that we purchased for 14.50 several months ago
           Recd another 300 pcs. that we just recd in Aug. for 17.50 - After I am done with all my month end steps, the inv. value for this part is in at 6212.50   (355 x 17.50)  I have lost the fact that  55 of these s/b in inv. at 14.50 ea??
This same thing is happening on Finished goods items we manf - Once I run all the steps,  production parts that were made 3 months ago at a lower cost, has now been recalculated to the current standard cost in inventory value.  
 
Should I not be changing the average cost to match standard??
 
We use FIFO and standard costs when entering finished prod.