Menu
AS 2 Valuation of Inventory
rent paid for storage of finished goods whether to include this fixed cost in valuation of inventory? The same is not incurred for direct conversion of raw material to fg.
Replies (2)
No it will not included in cost of inventory.
As Per Para 8 of AS-2 , The Cost of Conversion includes Fixed Overhead that are incurred in converting materials into finished goods. Therefore , if the Finished Goods is complete in all respects (ie,ready to sell condition), then rent need not be taken to valuation of inventory.
Recent Threads
- Revised Income tax return karna padega kya
- Registration as deductor on traces site
- Rental Income from a Joint Holding property
- Itr 4 return filing question
- Whether GST applicable on Hardship Compensation pa
- ITC cannot be denied to Bona Fide Buyers for Suppl
- Unused ITC for Hotel after GST Change
- CA FINAL SPOM
- 44ad presumption of tax
- Friendly loan to blood relative?
Related Threads
CAclubindia
