Hello Experts,
I am an fresh CA in a fresh job in a mini steel plant. Our company is used to purchase CI Ingot Mould (this is used to shape hot liquid iron, which when becomes cold is the final product) and treat it as a fixed asset. This mould has a very short life span, say about a month or two. It is then transferred to stock and is used as raw material.
I wolud like to know the following on this:
1. Is this treatment of asset correct or it should be treated as stock or consumables.
2. If it is an asset what should be the rate of Dep.
3. What should be the transfer cost.