Valuation of inventory

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2011 in a trading organisation where the company is operating all india basis and having the warehouses in every state. should the freight paid on stock transfer from one branch to another against form-F be included in the cost of inventory.

CA Sumat Singhal

CA Sumat Singhal (Expert)
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29 September 2011 As per AS 2 other cost that are incurred to bring the inventory in present location and conditions are included in cost of inventory.
CLARIFICATIONS
EXCLUSION OF CERTAIN COSTS
storage costs unless those costs are indispensable in production prior to further processing.
SO JUDGE YOUR PRODUCTION PROCESS FROM ABOVE SAID STANDARDS.
Kindly let me know whether this solution has solved your query.
Regards,
CS Sumat Singhal

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 i have already stated it is trading organisation and the company is importing into india .

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