Dear Friends,
Pls assist me the below Raw Materials consumption accounting process;
June month Opening stock 50 Lakh,
Purchases 30 Lakhs, Consumed 40 Lakhs, Closing Stock 40 Lakhs.
FG Sold 30 Lakhs, Balance FG 10 Lakhs. So, can we show RM consumption 40 Lakhs in P&L under COGS and 10 Lakh as a FG in Balance Sheet or sold value only need to show in the P&L? If yes, balance consumption 10 Lakh where we will account and where it will reflect?.
Sales 30 lakhs
Closing inventory in balance sheet 50 lakhs
Cogs is 30 lakhs.
CAclubindia
