My client is engaged in the business of site excavation and clearance i. e. excavating earth to lay the foundation of a building. He bills his customers in proportion to the soil excavated. He has billed his customer upto 15th March for the soil excavated till then. For the balance 16 days, he has valued his work in process at work order rates agreed with his customers. What should be the method of valuation? Is this correct?
Thanks
Sanjay
Yes
work in progress shall be computed as per existing provisions derailed inAS 10.
The work order rates are taken for valuation as per current periods cost.
lifo method.
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