06 January 2011
In a company making readymade garments,the raw material cloth is purchased from outside.It is cut eg.1 metre to make a t-shirt .then it is embroidered and stitched and the t-shirt made.
So the labour charges for embroidery are to be included in the cost of raw material ie cloth or as separate labour charges?
06 January 2011
No doubt we are doing value addtion with the cloth by embroidery, but any payment made to the labour has to be recorded seperately. Such cost shall be seperately shown as labour cost only & cannot be merged with the cost of raw material
CAclubindia
