Raw Materials Consumption Accounting

Sales 30 lakhs

Closing inventory in balance sheet 50 lakhs

Cogs is 30 lakhs.

Yes. 10 lakhs included. Closing stock, everything is ending inventory. 

The raw materials are already in closing inventory. To pl statement will not get impacted because it has reduced expenses through cogs and thereby balancing the equation assets= equity plus liabilities. I have just now done a small excel modelling and it does tally the balance sheet equation irrespective of what method is used for inventory valuation (Cost or NRV) method. 

Now what happens is, when inventory value decreases:

Asset value decreases

Gross and net profit decreases.

Net profit reduction impact is carried forward to liabilities section through retained earnings.

this is how it balances assets, equity and liabilities. Finally, if inventory valuation increases, assets will increase, liabilities will increase tallying the balance sheet.

Sure will send them to you.