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Valuation of Inventory

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(Querist)
08 September 2010 Dear All,

X company buys tailored made material at Rs. 100 per kg. But once the material is accepted by the company and if it wishes to sell the material immediately still company will have to sell the material at scrap rate i.e. half of the cost price. In this scenario, how the company should value its raw material in stock?
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
08 September 2010 cost need to valued the net realisable value on material disposal
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