Hi
When goods are received from supplier free of cost as samples / gifts, how should it be valued for closing inventory.
Jeetendra Goyal
(Student CA Final )
(175 Points)
Replied 09 January 2014
cost would be nil... only qty is to be accounted for
Nazia
(Asst Manager - Finance)
(139 Points)
Replied 09 January 2014
thanks a lot jeetendra..but if for the cost of 10, 11 units are given, then can the cost be averaged for 11 quantities?
Nazia
(Asst Manager - Finance)
(139 Points)
Replied 09 January 2014
someone pls do reply...jeetendra??
Nazia
(Asst Manager - Finance)
(139 Points)
Replied 09 January 2014
i ordered 10nos, but suppler gave me 10+1=11 for the cost of 10 i.e. 1 unit free
Jeetendra Goyal
(Student CA Final )
(175 Points)
Replied 09 January 2014
avg of 10 units is to be considered...... if u take avg of 11 units then cost would not be correct
arpit
(Student)
(39 Points)
Replied 11 January 2014
@ Jitendra.. shouldn't cost per unit be the average of 11 units. i.e., cost of 10 unit divided by 11 units ???
CA. Roopali Kadam
(Jobs on assignment basis.)
(1459 Points)
Replied 08 February 2014
I think average of 11 units will be considered.