putea fi ot conga orate — coast Senet eatance sheet ete gc oli show itis ee at os 8 ‘se tas mae caret ysis ished oe gin tae alan i ee “) + ania tT sje consumed in Produc eres) upp t0 DE CE spares, FAW matey til EE ics eral sono ForesamD Mehay. ree Tr rstareh are veo are aarti’ ee ee area ey lat ad equipmeny ‘poy gs quent te sorte ce nt th ASU eather PP jd be dere Mpa prtcla item of fied re ed at ea, 20 pnt oer feria rE ad i wih a salto vai po econ ‘para Machin nso but canbe wed Peircatedainventoes fore * 2» | WHATS COST OF INVENTORIES Paras should be chargedothe statement of proitand loss as and when sued ‘eeescmption inte orinary courte of operations Appieabty 2:3 Accounting Standard i ot applicable in Fllowing cases ve Workinrogtss arising under comstzustan conto inching ee at to erie contact (AS. Construction contrac) «Workin progressing in ordinary course of business for sence ron! mpl consutancy sre, Inampee merchant Ban ative, Metical serves i protres) «Final Intament ld a toskinaade (Shares, Del Bonds ec) «Producers inventories ike tok, agsclural and forest ro Site inetal ls oe and gues Sich inventories are valved a sutreaable ake Measurement of vetoes etmrenres shouldbe valued atlower of cost andnetreasable val. 3.5 Major pots for avalon of Inventor * atemination of est of vcore 4 atcmination oft else vale of inventories 4 Campari between the cot and net realable value ‘Whats Cot of Inventories et of ventory ices Cos of purchase $ Canf conversion 5 ther one Gncurred in binging th inventories ote present ae etaas on eptasieaonee aa 61 Castof Puce Cost of parchase nla Purchase pce 1 Duties nd Tee brit inward 2 ther expendiues ave tibet he acquistion. las ® Duties and tne recoverable by ster rom aingautories Trade discount 1 Rebate Duty drawback {other sir tems entures,stadt mtn Hoe gods According toe ‘ese at oy ait sh oe Solent aes documents at 7 Ag ces se elt co dic) Tt he 352 ot tpi es EE) ra ee nena dandvarbleproduction overieads thy {Ser rl ed en eco of rato that ry ar regaesof volume of production (de use ot al te emt buking cot Fc ‘otha inventories are ne measured above cost. tat : Senranapaioenenatnocesae see etrants See oe hot of mac al th re meson tnt alae va, ol oor. cs of emerson nel tebe valog) i htm nar a igi ner to the. a cost roms Para 38 are ramorcd from th factory: The Guidance Note on “Accounting ‘Treatment fr Excise Duty” sed by ICT states that sine the ait qorexcne duty arses when the manafacture ofthe ods complete IMisneeesary locteatea provision foray of mnpai excise duty 08 ‘ache ing in factory or bonded warehouse. The estimate, of sich Tidy an be made a he ratesin force on the balance shet date. The ‘cise day pal provided on fied goods shoul, therefore be {ned inimventory valuation” In estimation ofthe prison required {orth purpose the actors such ae whether te finished zoods Ing in adi the caren year wv form pat of the exempted goods Dex ‘esr and whether exne dy exempons wllontinucin the mest 3 foul consdcred For example tock neat for exporesno ce “Diy wonil be incl sinc excise sot viable on gos meant for exports ‘Since on the one hand a provision for excise duty wl be made and on fhother and suck provton wills be nce costo inventory, {he impact on profit snd ess account wl be NH Eelusions from cst of Inventories {37 Following costs are excluded fom the cot of Inventors “Abnormal amounts of wasted materials, labour, other production “6 Storage cot 1 Ainistrative overhead 1 Sling and disibutian cost 1 terest and boron cost However, AS-6allows such east fo tench ica form part ofthe cost. ost formula {hte Speci eniicaion metho for determining cst of iventorics eh enutication method mcans deel Tnking the cost wih ‘pee of iments, This met has pplication nthe following nations Mtn case of purchase of item specifically segregated for specie projet and eno ordinary interchangeable 4 Incase af gods or services prouced and searegsid for specific projet 342 Whe iis nition mat aa - We Sent nition method nt appeal. The cost oF siento Bice y th folowing nebo:anon oF VESTORES a eee - et a mt Pa «Ho (Fitin Fi Ou) Seed ener cots SG i is impractical to calculate | 39h sk ‘Redo eran 1 Ret Method ‘sean my be wed or convenience ihe 1a sudan Cos- takes FPeeral and ups, abo ‘re ean fei een coson. Si Ren Method 1s ‘iia cranes on ot enters arr hts inpatient costing nto he cost the flowing methods resus approximate 4 account poral level of constmption ne ites and cpacy wlan, I va an evo hing inte conseration the neal sd in tal bass, when i dual tem tw pleat when ems ung tems andbave sar Margi nd "pps isl to replcement ric ofr mateo ups and this ra motel wl be ald replacement pe 111 Cast ofthe aw mae ints) -Thelavetery of ns shod be value ant of impat dany-In ther wordt spect do ad ‘nits wi norm part the cs af inca ln some cae the same ite of input can be obtained fom diferent sources some of them may be abet provi the es dunes Geidecingfsyment of dat whe hrs may not Be able to provi the required documents In much ees where knot pote forthe bayer to take advantage ofthe NODVAT/CENVAT cre, the sng ck fay atrial pats) of ich sould be ald nce af the speci yon ps ‘Compariion between cot and net realable value 5412 The comparion between cost nd net elu val shold he ‘nade tem by em orb group tems Distsur nthe final statement ‘88 The inal atmo sould dle the felowing ‘Accounting pay adopted in messuring inventors ‘nies he cost ofinentorysdterined by reducing from Pee a incentories the approximate percenage of gross hepa Te prcentag use kero cnsderatonthelnventry that |e maried dows to bow ts orl sting ple | wate Net Real |L40 Ne easble alc meas he estimated sling peice in ordinary {eure busines es atte costa completion an eximated cost ‘recy fom ical Net selubl value westrated onthe asi | GRSSTMIANE Sales a the tine of talon. Estimation ef net ‘lm vale ao tes ito aeount the parpoe for hich the Iinntry el Esto oft ela ale made asa each alance see date 1 Cost formula wed. | Chsicaons of nentois are: (@ Raw materi and components (@) Workin-progtess (@ Fined goods (Gd Stocksinsrade in esos of woods aco For teading) (@ Stores and spares ) Leone tks (Others esty mare) I Vale? | fp) ester ac a(meebovaLeanos or vexrOns al ~~ is ey Ee an FO a oT elias Senneterre Zeke ema caeeaao i inti lan 2 | enero ctr pd SS2lecerrant9 itech added ied 3 ey ead spe her coy thane ace eo aes {2 Ra atrial we purchased pe. Pa ro mateo ‘esl. The finite gods mwhichthera tater a pincrportedare expected cb tld at bbw labo ig malta a ape Aegan cnt se per iliow ollie ena Sei An fr 4 0 AG rp ln at vette ‘Shetland hesuply el rsa pedo se oduoctpeialisttaad went ravine dea ety ‘cine inte pice of mate and exinatd tha the cet oe ted ira wi sd aie he ea oe yen dt Py bte intict soon och Solel cao eee orn Sho erro Skin) bora an ‘Snsuchcooorcrecopaed sveagemenintheperodaubihiesar ered ‘esol lis emi cele eed {Soin Rs 18243) lb charged inthe prot and seme [st peut = 5000 10m TS SDA Ti ll yon a mesa per at wn ons Move ‘iste Fess eduction care he ero oral oat foe Bass ToL elie sr sek ea Elna seme shri ol Aner poms eo ‘Sein a ee nang mers os ns, ‘Sia alent prod aa {Dont por eo Fahd pea be cemptd a oc arabe profane io Fatt oe s100900 000) ila as Seberang meters SS ee rnenmiatiemeroress crass (@ Sankey Debs Badal Towe) aks (Wena Towers i od) ootis |) Wa Tower) she See a Stet em engage Reso ame te cere Hb scataatagaiasiad acai Bocce oeragitqutper sin mer gaat ere nieee eee oreo ‘cedgahteaacardoetccg Wom seamen Seem rancmecioterce eats ee edoo ‘mvemaorawenous ; usenare das ap ea diem _ Lieeaiaeoate eae oj cet a eee zi [raxotirpaner | a sa arpa arpa Say a ee eee [ew Spa [mse = to erie: aet| A | aula metremnoaaigameiet ee ce | | |S naar rumen em icteric ae eel eo Te re dp one sitet ane ea nf{SS ‘vatuanaxor vesTones “ a romans negli eRe a 2 aaa | Irs sng nec fee mata = 0000 (nowt 2p 10D = RAO Reve int erent = 2093090/1920= Rs 184 ‘oat uo ithaca a ig a ctr ks Cal ad oa eh Crest (occa (3 Speen (Rea ve ‘cast |i vo | Poesrm tts Stetce polugune ko radar oe nse gods Rs HO pr Sammcr aiken saereiteatirs| fp | Manat spe iene cee reli ea eres cana ureurcgeia am 9 el pin te pt 00/80 finns as a “re sp an ‘PA. The Coenpany dealsinthree productsX,¥ vhichare neither similar nor eet id 0 RAL Phage ie go aot rth Yor 20-20 The‘atuxnov oF seston « ‘eral nd ot eae oe Hm of nae Be | z ‘en act li nea PEA cen cling Gi mh pl et Fr as ae Sotieitafieeaescaite demise recta wstgrtgerscpatn ptt Rrra 300 eta Terie iain, ie 1221 eesti) a oe eateries many Irn 0 ep ma ring ef fan arm mae SSS ib ean dad aes 27 erat cad 00 ptr NOPD pt cnt | pun ower ie 00050 of wi 0 fe Th Ese i ee ier a tines fas Re L06cme) oe tt dame raat Xi en owe cr doin aah neo Re 25 per un wtb vale ck cepa ee a ‘noon 1.1400) cine a eRe a vila pe Fo any ose ho con pce oe Foe patna csepeecrcertemirt SPSS peta ve of somos by wa ina Meisels Hoe eeritetcaeat teins nae Neagle ear a ae‘RB ol he spc eid il he dat ler gpd teat 29 he Sentient assed pita rey ering and chang WLP quantics Cooament nthe a ee ga da i + Hovering etn ia ‘ne ence ut a palo hind pe rca se gos and by po ‘ocr ed a cos be sie od te fa ee one ene Fre and tn! ot ca ere eS Te tk oeederaeling ert ed a, (oss cei sect ae ‘iw el Re2000 (1.50 pir WL pening dee of omen we poe Prot 1050 acoso a te aloo ching WLP yng FIFO and Weg Avera Catt ik Acoma che sawing en ce (@ Xpnotmarcbleand hereon market pce oot nn (Te eaentd epee ceing eX Rs 800 prt, 0 Tecoma ai enh hy deal oni [Tnurateel bend pect orton comeing neon mind ate ae {dear poccsngabecome reat yet ealsaevalact nie ps i canot ener. (ohana af abv a (ep, sas tect met fot ti “| ant 80 (0) N- net eter proceng of Xe ancetnabe