Valuation of stock & wip
This query is : Resolved
18 November 2011
our company provides construction contracting & electrical engineering services to defence department of India. Contract includes both. Our consultant says that in addition to purchase cost & direct expenses, indirect expenses should also be included in the value of inventory i.e. stocks & WIP. Is it correct to do so? Please post your reply urgently.
Rajnish Singh
(Expert)
18 November 2011
Dear
As per Accounting standard of valuation of Industries and nature of your defined business.
the follwoing mannaer has to adopt in valuation of Inventories & WIP>
# valueate all your stocks of raw material, material at site etc.
# valuate your work in progress .
# at a time of valuation of raw materials , which valuation method are followed by company has to follow.
and accordingly wip will be valuate.
As per Accounting standard of valuation of Industries and nature of your defined business.
the follwoing mannaer has to adopt in valuation of Inventories & WIP>
# valueate all your stocks of raw material, material at site etc.
# valuate your work in progress .
# at a time of valuation of raw materials , which valuation method are followed by company has to follow.
and accordingly wip will be valuate.
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