jassi (ACA) (181 Points)
09 May 2010Hi
What is the criteria to value the Work In progress Stock. Because practically i am facing alot of difficulty for valuation Of WIP.
Also in cost sheet we add op. stock of WIP and deduct cl. stock of WIP . But at what value we should take WIP stock in Cost Sheet.
Pls clarify
Thanks
Ankit CA and CS
(Manager - Accounts)
(204 Points)
Replied 10 May 2010
As per AS 2 Inventory should be valued at lower of cost or net realisable value. Now as per AS 2 Inventories include WIP. cost of WIP u know and NRV = saleable value - estimated amount of expenses that will be required for completion of product....
CMA.Devarajan Swaminathan
(ACMA)
(1067 Points)
Replied 10 May 2010
You have to arrive at the Cost of WIP by taking in the Direct Expenses and your production overhead. While apportioning your overheads to WIP, you will need to calculate equivalent units to arrive at a common unit measure.
What industry may i know?
Manish Kumar Drolia
(Manager)
(46 Points)
Replied 12 May 2010
Friends ..kindly let me know the detailed procedure of valuation of WIP under IFRS and also highlight how it is diferent from valuation done in AS?
CAclubindia
