Frnds.,
Do u think ., (Sales) +/- (Difference in Finished Goods / WIP) = Production at sales value ?
If not ., what is it ? ? ?
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Production at Sales Value?
Replies (4)
U have not mentioned that at what price u have valued the difference in finished goods or WIP.
| Originally posted by :Ruchika Gupta | ||
| " | U have not mentioned that at what price u have valued the difference in finished goods or WIP. | " |
FG n WIP are valued at Cost .... < obviously > .,
Soo., shud i increase the FG n WIP by the Gross Margin to arrive @ Production at Sales Value ?
I think so, b'oz if u 've valued the finished goods/WIP @ cost price then the basis won't be uniform to arrive at a figure. If the aforesaid variables were in terms of quantity only (and not in monetary terms) then the equation would give the figure of quantity produced. But if u want to find out the production figure in monetary terms then u have to use the same base for all variables of the aforesaid equation i.e either the sales price (which would give PRODUCTION AT SALES VALUE) or at cost of production (which would give PRODUCTION AT COST).
| Originally posted by :Ruchika Gupta | ||
| " | I think so, b'oz if u 've valued the finished goods/WIP @ cost price then the basis won't be uniform to arrive at a figure. If the aforesaid variables were in terms of quantity only (and not in monetary terms) then the equation would give the figure of quantity produced. But if u want to find out the production figure in monetary terms then u have to use the same base for all variables of the aforesaid equation i.e either the sales price (which would give PRODUCTION AT SALES VALUE) or at cost of production (which would give PRODUCTION AT COST). | " |
Heei tnks a lot
evn i thot d same rey
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