Ashwin (Student CA CPT ) 21 May 2018
I have Query Regarding the Valuation of Inventory
The company has opted for the weighted average method for ascertainment of inventory cost.
The company has 3 branches and the valuation of inventory is done branch wise.
My Query is how the branch transfer will be accounted in the books, Since the method is weighted average the rate of inventory changes as per transaction, and rate of moving average in one branch will be different from other branches
Thanks and Regards
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Dhaval (Senior Manager - Finance & Accounts) 18 July 2019
In Branch Books you need to consider Inventory Valuation based @ Stock Transfer Price (Inward).
Because it is cost for that branch (purchase cost).
At gross level it will be nullified.