banner_ad

Cost calculation/inventory valauation

Cost Accounts 759 views 1 replies

ABC is a brick manufacturing company. It Produces   120 raw bricks by input of 
Raw material of Rs 100 and direct labor of Rs 400. The raw bricks are further processed into finished bricks with an additional cost of Rs 500.The Finished bricks produced from further processing of 120 raw bricks is 100 (20 bricks are normal loss) . The finished bricks consists of :  Q-I is 20, Q-II is 30, Q-III is 40 and Q-IV is 10 bricks.
 Q-III finished bricks are again reprocessed from beginning. The cost of reprocessing is Rs 20.
 Out of Q-IV bricks 5 bricks  are of realizable value of Rs 2  and other remaining brick of Q-IV is of Zero value. 
 Then what is the cost of the finished bricks?
Also, what is the value of Stock of finished bricks  if Q-I has realizable value of  Rs 20 and Q-II has realizable  value of RS 15 and half of Q-III bricks is sold at a value of Rs 5 and  half are reprocessed? Value inventory as per AS 2.Make  Appropriate Assumption. Q’-denotes Quality.

 

Replies (1)

The method of inventory valuation has been in accordance Cost Accounting Standards issued by ICMAI ie CAS-1,CAS-2,CAS-3 & CAS-5 AND CGAAP.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details