As per AS-2 the stock is valued at cost or lower of NRV.
Can u tell me what are the components of cost????
6 Replies
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 19 March 2008
Jitendar this is not the way to speak..Kindly let me know where i will be find in the icai.org
So i will read from there
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 19 March 2008
Dinesh Acc to AS-2
Cost Components are
1.Cost of Purchase
2.Cost of Converstion
3. Other costs are included in the cost of inventories only to the extent that they are incurred in bringing the inventories to their present location and condition. For example, it may be appropriate to include overheads other than production overheads or the costs of designing products for specific customers in the cost of inventories.
Jeet Biswas
(ACMA (in Service))
(5073 Points)
Replied 19 March 2008
Cost = Cost of Purchase + Cost of Conversion + Other Costs
Cost of Purchase = Purchase price+ Duties, taxes + Carriage inward etc LESS: (trade discount+ Rebates+ duty drawbacks etc)
Cost of Conversion = Prime Cost(Direct Mat, Labour & Expenses) + Fixed & Variable Prod. Overhead.
Other Cost= any other incidental cost as reqd for bringing the Inventory to its present location.
Costs EXPRESSLY Excluded: Abnormal loss, Storage cost, Admin Ovd, S & D Ovd., Int & Borrowing costs
Note: The above mentioned data isnt exhaustive, other inclusions & exclusions might be present.
arijit
(CA final)
(56 Points)
Replied 16 November 2008
| Originally posted by :arijit | ||
| " | what would be the method of allocating fixed overhead at the time of inventory valuation? | " |
Recent Topics
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
CAclubindia
