I have a doubt in the following equation:

COGS = Beginning inventory + Purchases - Ending inventory.

COGS includes material costs and conversion costs (such as labor, power, etc.). I am not able to understand where are the conversion costs (of the goods sold in a year) in the RHS of the above equation. I think the term (Beginning inventory - Ending inventory) is added to adjust the purchases with the excess/short inventory sold when compared with the purchases. "Ending inventory" and "Beginning inventory" do not accumulate the conversion costs for the goods sold in the entire year. So, where are the conversion costs in the RHS of the equation?

Example to highlight my doubt - Let's assume in a given year, the level of the inventory does not change i.e. Beginning inventory = Ending inventory. Here, COGS = Purchases. I think in the RHS, "Purchases" only includes material costs. Where are the conversion costs (of the goods sold in a year) in the RHS of the equation?

if books of accounts have been closed ut still we r having some bill which are reaming to boo how to make entry for that although we have finalised our balance sheet?? mainly some vendores are remaing to pay

if books of accounts have been closed ut still we r having some bill which are reaming to boo how to make entry for that although we have finalised our balance sheet??

Dear Sir

I have open a new donation funding a/c in canara bank for kathmandu (nepal) earthquake .How was treated a books of accounts.how to show collecting funding amount in books of account. please suggest me.

Dear Sir,

I have a query in respect of Schedule-II. My query is:

An small IT Company which purchases Computers every year for expansion. Now WDV of all these computers purchased till 31/03/2014 is Rs. 1000000. Cost of these computers when they were purchased was Rs, 5500000.
Now my question is that what will be the remaining life for these computers as we purchase computers every year almost.

Hii cci expert, I m student of ca final. my attempt due on may 2016. so my query is that I do not want to join any classes. so I need books of all subjects other than institute books. so plz suggest me relevant books for all ca final subjects.

Dear Sir,

I have a query regarding the new method of Calulation of Depreciation based on useful life. My query is-

If we have a Business having three Busines Process. And we purchased a Machine only for Process 1 on 1/4/2005 and remaining processes are outsourced.
But later on, on 1-04-2010, we also purchased Machines for 2nd and 3rd Process and Combined all the three Machines as a Single Plant.
Now How the Rate of Depreciation Will be calculated????
Whether Separately on each machine or on the combined plant as a whole??
IF on the combined Plant as a whole, then How??

sir,
can you please suggest about foreign exchange, my query is when booking of export sales to a foreign rate taken from customs declaration rates,where as we receive USD form debtor which rate we have to take weather we receive usd In EEFC a/c

Sir, my question is why this p&l A/c is called so instead of calling profit or loss a/c irrespective of there is either profit or loss in a particular financial year?

I WANT TO SHOW BANK DEPOSIT BY USING THE FUND
CREATED BY PROFIT AND LYING AT THE LIABILITY
SIDE OF BALANCE SHEET.
HOW I PASSED THE CONTRA ENTRY FOR TALLY THE
BALANCE OF BANK ACCOUNT ?
PLEASE ADVISE.