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According to IAS2 Inventories, which of the following costs should be included in valuing the inventories of a manufacturing company? (1) Carriage inwards (2) Carriage outwards (3) Depreciation of factory plant (4) General administrative overheads
AS PER IAS2 INVERNTORY SHOULD INCLUDE DIRECT COSTS AND OPTION1 IS CORRECT.
EXPLAINATION IS GIVEN BELOW FOR YOUR UNDERSTANDING
IN INVENTORY Cost should include all....
Inventory cost should not include...
Cost should include all: [IAS2.10]
costs of purchase (including taxes, transport, and handling) net of trade discounts received
costs of conversion (including fixed and variable manufacturing overheads) and
other costs incurred in bringing the inventories to their present location and condition
Carraige Inwards cost will increase the value of material/purchases and it appears in Debit side of Trading Account under the purchases.
Carraige Inwards cost will increase the value of material/purchases and it appears in Debit side of Trading Account under the purchases. 1.So, the carraige inwards will be a part of inve
IN INVENTORY Cost should include all....
(1) Carriage inwards, this part of the cost for the inventory
carriage inwards
carriage outwards
depreciation of factory plants