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Working capital management

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 11:41

13

Answers (6)

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


Lavanya Chitturi

Lavanya Chitturi

Moderator

06-Aug-20 12:32

So should we need to adjust the opening stock


Swathi Krishna

Swathi Krishna

CA Inter

7K+

06-Aug-20 12:33

Yes you should adjust opening stock


Lavanya Chitturi

Lavanya Chitturi

Moderator

06-Aug-20 12:48

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


Swathi Krishna

Swathi Krishna

CA Inter

7K+

06-Aug-20 13:11

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

Moderator

06-Aug-20 13:27

Thank you ma'am


Swathi Krishna

Swathi Krishna

CA Inter

7K+

06-Aug-20 22:44