21 May 2011
hai, we are a manufacturer, we are going to prepare our accounts to audit, so we should calculate closing stock, but we have no idea how to calculate closing stock. we have follwoing details 1.purchase of raw material(Local& Import) 2.purchase of consumables (Loacs & Import) 3.electricity 4.freight inward 5.Fuel 6.Alumium & Steel rod in qty & kgs 7.manufacturing and sale qty (month wise) 8.we have taken physical stock as on 31.03.2011 9.custom duty paid details
23 May 2011
First you need to indentify the method of valuation of closing stock i,e FIFO or Average Rate. The same should be in consistence with the method adopted in the previous year.
The rate of RM & consumable should be valued on the basis of landed cost i.e net of input credit availed (VAT & CENVAT)
WIP & FG should be valued considering the appropriate factory overhead. Refer the Costing Standards published by ICWAI for more details
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