Can anyone help me by explaining the methods of valuation of inventories - RM, WIP & FG, all three ?????????
4 Replies
Navneet Gupta
(Article)
(129 Points)
Replied 22 December 2009
i am not asking about theoretical concepts. i need to know, from a practical viewpoint, how we can verify valuation of inventories?
ANAND JAIN
(ASSISTANT AUDIT OFFICER (COMMERCIAL))
(22 Points)
Replied 25 December 2009
SEE ITS COST OR NET REALISABLE VALUE. FOR COST YOU LOOK AT PURCHASE PRICE IN CASE OF RAW MATERIALS WHICH GENERALLY DO NOT HAVE ANY REALISABLE VALUE.
WIP IS VALUED AGAIN AT COST AS THERE IS NO REALISABLE VALUE
FG IS TO BE SEEN CLOSELY. COSTING RECORDS OF THE COMPANY FOR COST, AND LATEST SALES INVOICE FOR REALISABLE VALUE
YOU MAY ASK A SPECIFIC QUES. ALSO
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