doubt regarding assumption taken in question

Financial Management

works cost is assumed to be equal to the cost of good sold under the assumption that the opening & closing value of both wip and finished goods is not given in the question, but the value of closing stock of finished goods is given in the question, and is also computed later on by sir at 6 % of the works cost,so isn't this assumption worng? Video Details ------------- Financial Management Financial Analysis & Planning - Ratio Analysis #18. Illustration 3: Balance Sheet from Ratios - Part 2

aravind lalji

CA Inter

★ 0

21-Apr-24 22:58

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Answers (2)

FG is 6% of Works cost but we are not aware of opening FG, opening and closing WIP - hence we will assume COGS as works cost. We cannot compute COGS with just one piece of info when we require 3-4 items

Sriram Somayajula

Admin

28-Apr-24 05:08

Sriram Somayajula Admin

thank you sir

Thread Starter

aravind lalji

CA Inter

★ 0

29-Apr-24 04:21