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Valuation of inventory

Accountancy

Why cost of partly finished product is considered while doing valuation of inventory and why completely finished goods are not taken into consideration.

Snehashis Mohanty

CA Inter

★ 35

14-Dec-22 21:32

380

Answers (9)

Pls share question

CA Suraj Lakhotia

Admin

14-Dec-22 21:41

CA Suraj Lakhotia Admin

Pls share question

Sure

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Thread Starter

Snehashis Mohanty

CA Inter

★ 35

14-Dec-22 21:50

This is WIP. Finished goods will also be valued if lying on the year end

Shankari C

CA Inter

★ 12K+

15-Dec-22 00:24

Thread Starter

Snehashis Mohanty

Sure

Does the question gives details of FInished Goods?

CA Suraj Lakhotia

Admin

15-Dec-22 11:11

CA Suraj Lakhotia Admin

Does the question gives details of FInished Goods?

No there is no details given of FG but the sale price is given which is 250

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

15-Dec-22 11:28

Thread Starter

Snehashis Mohanty

No there is no details given of FG but the sale price is given which is 250

So not valued. If question asks value inventory You need to value RM, WIP and FG.

CA Suraj Lakhotia

Admin

15-Dec-22 11:46

CA Suraj Lakhotia Admin

So not valued. If question asks value inventory You need to value RM, WIP and FG.

Sorry I still can't able to understand.

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

15-Dec-22 21:21

The question you sent talks about WIP only. If questions asks for finished goods,then you need to valuate it

Shankari C

CA Inter

★ 12K+

15-Dec-22 21:47

In this question - The requirement is calculate WIP only. If the question asks value of total inventory calculate all.

CA Suraj Lakhotia

Admin

16-Dec-22 09:13