valuation of stock
TRANSCRIPT
![Page 1: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/1.jpg)
![Page 2: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/2.jpg)
![Page 3: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/3.jpg)
![Page 4: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/4.jpg)
![Page 5: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/5.jpg)
Inventories should be valued at the lower of cost and net resale value
MAJOR POINTS FOR VALUATION OF INVENTORIES
•Determination of cost of Inventories
•Determination of net realizable value of inventories
•Comparison between the cost and net realizable value
![Page 6: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/6.jpg)
Cost of Inventories Includes:
–Cost of Purchase
–Cost of Conversion
–Other Costs (incurred in bringing the inventories to
their present location and condition)
![Page 7: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/7.jpg)
Net Realizable Value=Estimated selling price – Estimated
cost necessary to make sale.
If the finished product is sold at cost or above cost, thenthe estimated realizable value of raw material andsupplies is considered more than its cost
If the finished product is sold below cost, then theestimated realizable value of raw material or supplies isequal to replacement price of raw material or supplies
![Page 8: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/8.jpg)
Inventories should be valued
at lower of Cost and Net
realizable value.
![Page 9: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/9.jpg)
![Page 10: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/10.jpg)
![Page 11: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/11.jpg)
![Page 12: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/12.jpg)
![Page 13: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/13.jpg)
![Page 14: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/14.jpg)
![Page 15: Valuation of stock](https://reader031.vdocument.in/reader031/viewer/2022022415/5a64f03a7f8b9aa2548b4bbb/html5/thumbnails/15.jpg)