In case of new company, for estimating the value raw material is already for work in progress calculations, then why is the raw material consumption for work in progress plzz again. Partical problem question 1
It should be 84,000 instead of 96,600. It is a mistake in the material.
But sir (in the video class) told it is included but I can't understand the logic behind the addition of such value
Sry I meant plzz reply
The question mentions that Raw material equal to 2 months consumption would be kept in stock. Consumption of rawmaterial is for - Finished Goods & WIP. Hence both are taken.