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AS 07
Accountancy
Why can't we assume that 140000 is not included in future estimated cost and add it to that
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Best Answer
140000 is materials unused. It is inventory. When the inventory would be used it would be future cost. Now since the estimated future cost is given separately, you would not again add inventory. Say estimated future material required is 100 kg. You already have 10 kgs. You will not say future cost is 110 kgs.
