As 2- valuations of inventory.
This query is : Resolved
17 January 2013
Dear sirs,
As per the Accounting Standard 2, The cost of inventory should comprise all costs incurred to bring the inventory to their present location and condition.
However,How can i consider the following expenses.
1- If a company paid Demurrage, penalty, or additional rent to the transport agent for delay in receipt of goods.
2- A company paid and additional fright due to wrong transportation plans or fright charge paid to transfer the goods between the factory locations.
Faithfully,
As per the Accounting Standard 2, The cost of inventory should comprise all costs incurred to bring the inventory to their present location and condition.
However,How can i consider the following expenses.
1- If a company paid Demurrage, penalty, or additional rent to the transport agent for delay in receipt of goods.
2- A company paid and additional fright due to wrong transportation plans or fright charge paid to transfer the goods between the factory locations.
Faithfully,
Amol S Joglekar
(Expert)
17 January 2013
These are abnormal cost and hence shown separately.
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