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Material Record on FIFO or Average Price
can we maintain material record at construction site on average price for closing stock and in accounts can we maintain on FIFO basis as the closing stock total amount will be same in avg price and FIFO method
Replies (6)
Quick Summary
Yes only through FIFO and AVCO, the cost is established. I recently read some acca books and i found out cost per unit or something can also be used. I'll get back once i remember the third method.
But i doubt both will be the same.
Alright the third method is actual cost basis of they are non fungible goods only. But if your doing contracts, you have to use that standard as 2 is not applicable for wip. If it's self constructed asset, and as 2 is not applicable work in progress not unless you have an intention to sell.
But whatever policies are being set it must be disclosed in accounting standard and basis of accounting policies. Accounting standard 2 is best suited.
If they want less marks in the exam, they can. If they go through the scope it is clearly visible.
If they want less marks in the exam, they can. If they go through the scope it is clearly visible.
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