Question
S, an entity had 500 units of product X at 30 June 2015.
The product had been purchased at a cost of $18 per unit and normally sells for $24 per unit. Recently, product X started to deteriorate but can still be sold for $24 per unit, provided some rectification work is undertaken at a cost of $3 per unit. What is the value of closing inventory at 30 June 2015.Solution
As per AS – 2, the inventories are to valued at cost or NRV, whichever is lower. Here, cost = 18 and NRV = 24-3=21. So, lower among the two is cost, i.e. 18*500 units.
An auditor resigns from a listed company. Within how many days must they file Form ADT-3?
Which of the following is classified as financing cash flow?
A company is planning a capital raise of ₹20 lakh, with 60% from equity (cost 16%) and 40% from debt (cost 10%). If the tax rate is 30%, calculate its...
As per the Nayak committee, what percentage of its annual projected turnover should an MSME get as working capital from a bank?
Which of the following is not a payment product of NPCI?
A project has NPV of ₹5 lakh and standard deviation of cash flows is high. What does it indicate?
Omega Ltd. has idle capacity and receives a special export order for 2,000 units at ₹420 per unit. Normal price = ₹500. Unit variable cost = ₹350....
Which of the following is NOT a direct party to a Letter of Credit (LC)?
An enterprise consumes 25,600 units of a component annually. The order cost is ₹600 per order, and carrying cost is ₹12/unit/year. A supplier offers...
_________ is NOT a part of Monte Carlo Simulation.
Relevant for Exams:
