Consignment..........

CPT 837 views 2 replies

Q 15 from module in consignment:

Consignment  [Quantity 500] value at IP 250000 , at cost 200000 . Consignor's expenses 4000 consignee's non selling expenses 1000 selling expenses 2000 stock quantity 100 

Value of consignment stock :ANS Rs 51000 as per the module.

Query: Non selling expenses has been included for arriving at the answer , however in common paralance non selling expenses includes administration expenses . For valuation of consignment stock only expenses until the goods reach the godown of the consignee are to be included , in this instance how can non selling expenses be included.

EXPERT OPINION REQD  

 

Replies (2)

Dear, Selling expenses includes Administrative expenses not non selling expenses,
and so in this case you have to include non selling expenses to arrive at  the answer.....

 

And non selling expenses includes rent expenses n all. 
So don't be confused.......between selling and non selling expenses.

 


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