joy LTD purchased 20,000 kilograms of raw material @ rs 20 per kilogram the year 20-21.
opening inventory:. units. amount
finished goods. 2000. 100000
Raw materials. 2200. 44000
direct labour. 306000
fixed overheads. 300000
sales. 20000. 1120000
closing inventory:
finished goods. 2400
materials raw. 1800
The plant has a capacity to produce 30,000 units of finished product per annum.however the actual production of finished products during the year 2020-2021 was 20400 units.due to fall in the market demand the price of the finished goods in which the raw material has been utilised is expected to be sold for rupees 40 per unit. The replacement cost of the raw material was rupees 19 per kg.
you are required to ascertain the value of closing inventory as at 31st March 2021 as per accounting standard 2.
plse explain me
on the cost basis, it is thirty point forty two laks worth of closing inventory. could not post the problem here. Please tell me what is the text book that you got this question from
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