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In institute's textbook,practical problems question no2 (M.A.Ltd) The amount of production expected is given, does that mean production for the current year is given or production adjusting opening stock is given ?


Swathi Krishna

Swathi Krishna

CA Inter

7K+

06-Aug-20

63

Answers (6)

The estimate of only production of year 1 and year 2 are given.


Lavanya Chitturi

Lavanya Chitturi

CA Inter

895

06-Aug-20

So should we need to adjust the opening stock


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

06-Aug-20

Yes you should adjust opening stock


Lavanya Chitturi

Lavanya Chitturi

CA Inter

895

06-Aug-20

But when finding the raw material value they didn't adjust the value of opening stock They took it as 9000 units itself. Why ?


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

06-Aug-20

Since, 1000 unites are finished goods they need not be considered in computation of raw materials. they are readily available for sale.


Lavanya Chitturi

Lavanya Chitturi

CA Inter

895

06-Aug-20

Thank you ma'am


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

06-Aug-20

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