Question
A company purchased 10,000 units at ₹20 each. Freight
= ₹1,00,000. Normal loss = 500 units. At year-end, 8,000 units are sold. Closing stock should be valued at?Solution
Total cost = (10,000 × ₹20) + ₹1,00,000 = ₹3,00,000. • Normal loss = 500 units → effective good units = 9,500. • Cost per good unit = 3,00,000 ÷ 9,500 = ₹31.5789… • Units left = 9,500 – 8,000 = 1,500. • Closing stock = 1,500 × ₹31.5789… = ₹47,368.42 ≈ ₹47,368 (say ₹47,000 on rounding).
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