Question
A company uses Raw material A to manufacture finished
goods, price of the raw material A is on the decline. The finished goods in which the raw material is incorporated are expected to be sold below cost. The company is having a huge stock of raw material A however NRV of this raw material is not available as it is a rarely used stock. How should the company value raw material?Solution
Material and other supplies (i.e., raw materials) held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. However, when there has been a decline in the price of materials and it is estimated that the cost of the finished product will exceed net realizable value, the materials are written down to net realizable value. In such circumstances, the replacement cost of the material may be the best available measure of their net realizable value.
26th November is celebrated as which of the following day in India?
As per the passage distribution of powers is outlined in which provision of the constitution?
(a) 7th schedule
(b) 3 lists
...In case of a property already subjected to mortgage:
The total amount of deductions from wages of employees should not exceed _______________.
Leading questions
The Constitution provides for the establishment of Public Service Commission
                     I.       For the ...
Which of the following is a decree?Â
What is the enforcement date of the IRDA Act, 1999?
Where a person delivers to a creditor documents of title to immovable property, with intent to create a security, the transaction is called
Any private person may arrest any person who:
