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AS-2
Accountancy
As per AS 2 The RM will be valued at cost or Replacement Cost if the FG will be sold at below the cost of FG. Then in this question why the cost of raw material is considered because the FG is sold at 350 wheather 360 is the cost. The question is give in the image
Answers (4)
CA Suraj Lakhotia Admin
You cannot value raw material above cost
So that's why we can't consider the replacement cost because it is more than the cost
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