Regarding closing stock valuation
This query is : Resolved
31 May 2019
Dear sirs,
We are calculating stock at cost or market price whichever low basis.
In this cost means what ?
Is it landing cost or what
How to calculate cost for inventory valuation
We are calculating stock at cost or market price whichever low basis.
In this cost means what ?
Is it landing cost or what
How to calculate cost for inventory valuation
ADNAN HASAN
(Expert)
31 May 2019
Dear Prashant,
Stocks are valued at low two:-
a) Cost
Or
b) Net Realizable Value (NRV)
Note:-1 Cost Means: It includes the price of goods, shipment costs, insurance fees, customs duties, and any other charges incurred along the way.
Note:- 2 NRV =estimated selling price in the ordinary course of business - estimated costs of completion and the estimated costs necessary to make the sale.
Stocks are valued at low two:-
a) Cost
Or
b) Net Realizable Value (NRV)
Note:-1 Cost Means: It includes the price of goods, shipment costs, insurance fees, customs duties, and any other charges incurred along the way.
Note:- 2 NRV =estimated selling price in the ordinary course of business - estimated costs of completion and the estimated costs necessary to make the sale.
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