acconting standard

This query is : Resolved 

16 June 2008 if stock had sent for further processing how you value the stock as on balance sheet date? accounting standard 2 doesnt say something about this. Is it necessary that on balance sheet date stock should be luying in business premises.(please explain with an example)

16 June 2008 if stock is in the process as on b.s date, it should be valued as Work In Process. u need to calculate processing cost and while doing it, take care of status of completion of process.

if process is not 100% complete, u may assume it 50% or more/less complete. calculate labour/power/other cost for that process and divide that by total qty processed and get per unit cost. add this cost to cost of goods, it is cost of WIP.

it does not make any difference if stock is lying in or out of factory premises. valuation method will be same if u have the ownership.

16 June 2008 if u get this process done by third party, u can take charges payable to that party as processing cost.





You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries