The total Value of the Quantity on Hand report is far different than the Inventory G/L account.
At this moment, our inventory is easily identifiable. So I believe the Quantity on Hand report is correct.
We are a job shop. We buy components, build something on a work order, and ship the result. We don't even record the value of labor against the work order. So, the whole idea of variable inventory value shouldn't apply to us.
I conclude that something has gone wrong in Inventory G/L entries. Maybe some received parts entered with zero value and consumed on a work order before having a cost/value assigned, but cost/value assigned before the work order was done?
What might have gone wrong? How can I identify and fix it?