Costing of Raw Material, manufactured in unit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2011 Suppose our company use raw materia 'A' to manufacture product 'B' and raw material 'A' also manufactured in our unit. then how to calculate cost of consumed A material

Ex:-
We have 5000 unit of Rs. 2,00,000/- as opening stock,
We manufactured 95000 Unit which cost Rs. 95,00,000/-,
We sale 10000 unit at Rs. 5,00,000/-

We have 10000 unit at stock,

Now how to calculate Cost of Consumed 80000 unit and cost of closing stock

Ashish Goyal

Ashish Goyal (Expert)
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25 May 2011 Units Amount

Opening Stock of A 5000 200000
Production 95000 9500000
Total 100000 9700000
Cost p.u. 97

Cost of material consumed : 97*80000=7760000

Cost of closing stock :
97*10000=970000

(Assuming the company follows Weighted Average Method of Stock Valuation)