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In this practical question 4 why have they totally ignored the units sold even though in net realisable value we do units sold less further processing

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sradha krishna sunil

sradha krishna sunil

CA Inter

5K+

22-Feb-24 20:22

91

Answers (4)

Best Answer

We have to allocate costs only for the production during the period. If produced was only 1000 then how can one sell 2000? Only possible explanation would be that balance 1000 units are out of the opening stock. We need to consider only current period production for appointment of joint cost.


Pranay Mehta

Pranay Mehta

Faculty

23-Feb-24 12:34

Can you please explain your doubt in more detail. Unable to understand your query


Pranay Mehta

Pranay Mehta

Faculty

23-Feb-24 12:12

The solution is given in a detailed manner with explanations by ICAI. I do not see any inconsistency in the solution provided by ICAI Attaching the same for your reference

practical question 4.png

Pranay Mehta

Pranay Mehta

Faculty

23-Feb-24 12:20

In the question units sold as well as units produced is given right even then only units produced are taken and used for computing net realisable value ..why we didn't take units sold ?


Thread Starter

sradha krishna sunil

sradha krishna sunil

CA Inter

5K+

23-Feb-24 12:29

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