Calculation of cost of production

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PANKAJ KUMAR SRIVASTAVA (Querist)

12 June 2013 sir,for calculation of cost of production whether depreciation will be added in cost of production or not?
please clarify because i have to make valuation of closing stock of finished goods

Rupesh Jain

Rupesh Jain (Expert)

12 June 2013 cost of production as per cost accounting will be added

but as per AS-2
valuation of goods as the rate to present locatoin, position all exp will be added

CA Kapil Verma

CA Kapil Verma (Expert)

12 June 2013 no depreciation on fixed assets will not added to valuation of closing stock

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

12 June 2013 Depreciation is not forming part of Cost of production.

PANKAJ KUMAR SRIVASTAVA

PANKAJ KUMAR SRIVASTAVA (Querist)

14 June 2013 sir valuation of stock of finished goods is made on cost or market price whichover is less.for calculation of cost of production depreciation will be added to cost of production or not ?

PANKAJ KUMAR SRIVASTAVA

PANKAJ KUMAR SRIVASTAVA (Querist)

14 June 2013 sir valuation of stock of finished goods is made on cost or market price whichover is less.for calculation of cost of production depreciation will be added to cost of production or not ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

14 June 2013 On valuation of finished goods depreciation will not form part of cost of stock. refer the AS-2

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