Valuation of goods received free of cost

AS 601 views 8 replies

Hi

When goods are received from supplier free of cost as samples / gifts, how should it be valued for closing inventory.

 

 

Replies (8)

cost would be nil... only qty is to be accounted for

thanks a lot jeetendra..but if for the cost of 10, 11 units are given, then can the cost be averaged for 11 quantities?

not getting uy question???

someone pls do reply...jeetendra??

i ordered 10nos, but suppler gave me 10+1=11 for the cost of 10 i.e. 1 unit free

avg of 10 units is to be considered...... if u take avg of 11 units then cost would not be correct

@ Jitendra.. shouldn't cost per unit be the average of 11 units. i.e., cost of 10 unit divided by 11 units ???

I think average of 11 units will be considered.


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