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Finished goods cost computation

usha (Student CA Final ) (31 Points)

25 September 2012

Whether fixed and administrative expenses are included in computing finished goods cost for working capital management or not ??pls help

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Dilip Dubey (Article Assistant) (29 Points)
Replied 25 September 2012

Fixed and admin overheads are allocated to the finished goods on the different bases of allocation such as direct labour hour method, machine hour method, ..

CA Vivek Kumar (Practicing CA And GST Content writer for legalfilings.in) (660 Points)
Replied 25 September 2012

For estimation of wc in finsh guds, we uses avg fin stock*365/cogs .In computatn of cogs: we include manufacturing exp,admin exps whether fixed or vrible..