IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

Working capital

Financial Management

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

Swathi Krishna

CA Final

★ 8K+

29-Jul-20 15:48

355

Answers (9)

Please elaborate your query

Madhuri Veluri

CA Inter

★ 2K+

30-Jul-20 23:56

Why is the raw material consumption that is for work in progress added here ?

Thread Starter

Swathi Krishna

CA Final

★ 8K+

30-Jul-20 23:59

Your doubt is as to why we considered the raw material consumption in the table calculation of stock of finished goods and cost of sales. Is that so?

Madhuri Veluri

CA Inter

★ 2K+

31-Jul-20 01:21

It should be 84,000 instead of 96,600. It is a mistake in the material.

Madhuri Veluri

CA Inter

★ 2K+

31-Jul-20 01:29

Madhuri Veluri

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

Thread Starter

Swathi Krishna

CA Final

★ 8K+

31-Jul-20 15:15

Pizza reply

Thread Starter

Swathi Krishna

CA Final

★ 8K+

01-Aug-20 23:54

Sry I meant plzz reply

Thread Starter

Swathi Krishna

CA Final

★ 8K+

02-Aug-20 00:35

Thread Starter

Swathi Krishna

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.