Stock transfers | inventory valuation


Student CA CPT

Dear Experts

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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Senior Manager - Finance & Accounts

Dear Aswin

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.

Regards,

Dhaval

 
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