M/s Delhi stationers purchase goods from the manufacturers do packing and labelling and sell to the customers .At the year end they had 1000 pieces of toilet soaps in hand purchase price which is 3. 25 rupees per piece. these are yet not packed and labeled. the packing cost per unit is rs. 0.35 per piece and selling price is 4.25 per piece. the historical cost and met realizable value of closting stock will be??
A 3250 and 3900 respectively
B 3250 and 4250 respectively
Position of the stock is work-in-progress. (Product does not have maket without packing).
As per AS 2 Net Realisable value = Estimated selling price - estimated selling exp - estimated cost of completion
So NRV per unit = 4.25 - 0.35 = 3.90
so total NRV = 3900 only.
simply Cost incurred upto now.
i.e. Rs.3,250/-
Rohit KC Jain & Co
New Delhi
CA Inter
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JAMNA AUTO INDUSTRIES LTD
Jamshedpur
CA Inter
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CCI
Pro
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