AS2 How will you value the inventory per kg.

of finished goods consisted of: Material Cost Direct Labour cost Rs.100 per kg Rs.20 per kg Rs.10 per kg

Direct Variable production overhead

Fixed production charges for the year on normal capacity of one lakh kgs is Rs.10 lakhs. 2000 kgs of finished goods are on stock at the year end. A Ltd. Produces chemical X which has following production cost per unit Raw Material Direct Labour Direct Expenses Normal Capacity Actual Production Rs.5 Rs.2 Rs.3 5000 units per annum 4000 units Rs.20,000 per annum

Fixed Production Overheads

The company has 2000 units of unsold stock lying with it at the year end. You are required to value the closing stock.

A company normally produces 1,00,000 units in a year. In 2010-2011. The however its production has been only 40000 units. At the year end the closing stock was 10000 units. The cost of unit is below Material Labor Rs.500 per unit Rs.250 per unit Rs.20,00,000 p.a. Rs.10,00,000 p.a.

Fixed Production overhead Fixed Administration

Calculate the value of closing stock

The company deals in three products X, Y and Z, which are neither similar nor interchangeable. At the time of closing of its accounts for the year 2010-11, the historical cost and net realizable values of the items of closing stock are determined below: Items X Y Z Historical Cost (Rs. In Lakhs) 20 16 8 44 NRV (Rs. In Lakhs 14 16 12 42

What will be the value of closing stock

Y Ltd. Purchased 500 units of raw material @150 per unit gross less 10% trade discount. Sales tax is chargeable @ 5% on the net price. The excise duty element on product is Rs.12 per unit against with MODVAT can be claimed. The company spent Rs.1000 on transportation and Rs.500 loading and unloading . calculate the cost of purchase of raw material. Cost of production of product X is given below Raw Material per unit Wages Per unit Overhead Per unit Rs.120 Rs.80 Rs.50 Rs.250

As on the date of balance sheet the replacement cost of raw material is Rs.110 per unit. The were 1000 units of raw material on 31-3-2010 Calculate the value of closing stock of raw material in following condition a) If finished product is sold at the rate of Rs.275 per unit, what will be the value of closing stock of raw material b) If finished product is sold at the rate of Rs.230 per unit, what will be value of closing stock of raw material.

M Ltd. purchased machinery from N Ltd. on 30.9.2010. The price was 380.44 lakhs before charging 8% sales tax and giving a trade discount of 2% on the quoted price. Transport charges were 0.25% on the quoted price and installation charges come to 1% on the quoted price. A loan of Rs. 310 lakhs was taken from the Axis bank on which interest at 15% per annum was to be paid. Expenditure incurred on the trial run was Material Rs. 35,000, wages Rs. 25,000 and Overheads Rs. 15,000. Machinery was ready for use on 01.12.2010. However it was actually put to use only on 1.5.2011. Find out the cost of the machine and suggest the accounting treatment for the expenses incurred in the interval between the dates 1.12.2010 to 1.5.2011. The entire loan amount remained unpaid on 1.5.2011. On 30.04.2010 TT Ltd. obtained a loan from the bank for Rs. 100 lakhs to be utilized as under : Construction of a shed Rs. 40 lakhs Purchase of Machinery Rs. 30 lakhs Working Capital Rs. 20 lakhs Advance for Purchase of truck Rs. 10 lakhs In March 2011 construction of shed was completed and machinery install Delivery of truck was not received. Total interest charged by the bank forthey ending 31-03-2011 was Rs. 18 lakhs. Show the treatment of interest under AS-16.