Regarding Valuation of Closing Stock of Raw Materials

by Srinivas.Thatikonda
(Hyderabad)

India!

India!

Q: I want to know whether storage costs (rent for storage of materials until it is used in production) will be considered for valuation of closing stock of raw materials or not.


A:
Very good question Srinivas.

Rent for materials would be considered a manufacturing overhead cost. It would
not form part of the value of the closing stock of raw materials. It would, however, form part of the finished goods that are produced at the manufacturing plant.

Please see the lesson on the
manufacturing cost statement for more information on overheads and other manufacturing costs.

Comments for Regarding Valuation of Closing Stock of Raw Materials

Click here to add your own comments

Purchase Tax included or not?
by: Anonymous

Should the tax paid for purchase of the materials be included for valuation of raw materials????

Editor: No. Tax is never part of the value of any asset or expense item. So exclude tax.

Click here to add your own comments

Return to Ask a Question About This Lesson!.






Enjoying this Website?
Help Support it with a Donation

OR...





Advertise on ventoup.ru

privacy policy




Related pages


trade payable definitionexamples of accrued expensessingle-step and multiple-step income statementaccounting cycle project answersmeaning of account payable and receivableprepare statement of cash flowsdebiting and creditingincome statement and balance sheet templateallowance for bad debt balance sheetconstruction cash flow templateincome statement with cogsdouble column cash book questionscredited or debitedowe in tagalogbuy simply accountingthe residual interest in a corporation belongs to theknetbooks customer servicedebits and credits accountingwip in manufacturingjournal entry for prepaid rentwhat is an accounts receivable ledgeraccouting quizcalculate wip inventorycalculate manufacturing overhead costperpetual accounting methodlifo fifoaccounts payables journal entriesunearned revenue iscost ledger control account definitionledger controlinventory sale journal entryjournal entry for reserve for bad debtswhat does exclusive of vat meantrading and p&l accountsole proprietorship accountingexample of business transaction in accountingexample of pro forma income statementis an income statement the same as a p&lwhat is consumable inventorygp formula calculationwhy is prepaid rent considered an asset accountdebits vs creditslifo method example pdfjournal entries depreciationhow to calculate sales tax backwardshow to prepare a statement of stockholders equityperiodic inventory system lifofull form of tallymanufacturing wipdirect materials formulabookkeeping t accountsdefinition of bookkeeping and accountinggross profit markupunearned revenue in accountingsubsidiary ledger exampleowners equity calculationmeaning of equity shares and preference sharesare debtors current assetsentry for accrued interestinventory costing methodretained earnings definition accountinginventory reserve journal entryovercast in accountingaccrual entries in accountingreverse tax calculator formulaaccounting for beginnersaccrual basis conceptimportant accounting conceptstrade debtorswhat does the word ledger meanbooks on accounting