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Accountancy
As per as2 valuation of inventories the measurement of cost for raw material is at cost or replacement cost which ever is lower I am a correct or not? For working progress and finished goods need a realisable value or lower of cost whichever is lower..
Answers (11)
Best Answer
If you are valuing Finished Goods at "cost" , then RM which is in the finished goods should be valued at "cost" and WIP also same should be valued at "cost" If you are valuing Finished Goods at "NRV", then RM which is in the finished goods should be valued at "Replacement cost" and WIP should be valued at NRV.
Divy Degda
If final good value at cost RM - cost WIP- cost If final good value at NRV RM - replacement cost WIP - NRV
Sorry, could you please explain elaborately please my dear friend
Thread Starter
MPR Sanjay KumarFriend right?
You could check the icai material as well...mentioned in one of the flow harts
Thread Starter
MPR Sanjay KumarActually this was post by divy degda??
Oh OK...even I didn't get what she was saying
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