Question

A company purchased 50,000 units of raw material at Rs.2 per unit. At what value will the raw material inventory be recorded in the books of accounts if the market price of the units as at 31 March 2021 is Rs.1.6 per units?

A Rs.100,000
B Rs.80,000
C Rs.20,000
D A or B as per accounting policy of the company
E A or C as per accounting policy of the company
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