There are four methods of Valuation:
1) FIFO 2)LIFO 3) Simple Average 4)Weighted Average
If we are a manufacturing Company and we have to value closing stock of Raw materials and Finished Goods.
Can we value the stock manually by identifying which Raw materials has been used in Finished Goods and then make valuation.
Inventory valuation should be cost or market price whichever is lower.
Cost is valued on FIFO, LIFO, Weighted average or simple average method.
U can value cost on any of the above
U can value it manuallyalso
there is no problem but u must have proper explanation how u valued it.
CAclubindia
