Closing Stock Valuation
This query is : Open
Sushil Vaidya
(Querist)
31 May 2009
Sir,
How can a manufacturing Co.Calcualte closing stock of Raw material,Stores & Spares & Packing material?
Is it calcualted with Basic price or Basic Price + Taxes + Expences ?
How can a manufacturing Co.Calcualte closing stock of Raw material,Stores & Spares & Packing material?
Is it calcualted with Basic price or Basic Price + Taxes + Expences ?
Ratan Sharma
(Expert)
01 June 2009
Generally manufacturing company value its WIP on market price basis as the cost price method is very clumsy. It needs apportionment of direct expenses upto the stage of completion stage. Therefore better to value it on market price basis. So far RM,Sotres,spares & packing material are concerned it is calculated as Basic price + Purchase Taxes + expenses to bring the goods to factory premises.
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