As per accounting standard to valuation of inventories or valued at lower of cost and net realiseble value...
1 .)how to value of inventory raw material
2.) how to value of inventory work in progress
3.) how to value of inventory finished goods
could you please explain me the as 2 valuation of inventory
plse guide me
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ACCOUNTING TREATMENT AS 2
Replies (2)
Quick Summary
1. Value of raw material as per purchased invoices because all valuation is done on rupee basis and not on quantity.
2. WIP - follow the COGM ledger for a better understanding of how opening wip + overheads + finished stock + waste is allocated. You can get that info from Corporate finance institute on Google.
3. From COGM only you can find the cost of finished goods.
When it comes to reporting, closing inventory includes, all three costs.
https://www.caclubindia.com/forum/details.asp?quote=2257138&mod_id=579968#reply
I wrote this a long ago and posted CWIP ledger as well. I forgot it myself. Its useful for students.
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