1.

Explain Valuation Of Issues And Valuation Of Returns?

Answer»

VALUATION of issues is a complex process because the material may be issued out of various lots which might have been purchased at various prices. Following METHODS are used for this purpose:

  • First in First out(FIFO)
  • Last in First out (LIFO)
  • Average Price Method
  • Simple Average Method
  • Weighted Average Method
  • HIGHEST in First out
  • Market Price
  • Specific Price
  • Standard Price

Valuation of returns indicates the material RETURNED by the production department to stores department. This valuation is done on two basis:

  • At the same price at which issued
  • At the current price of issues.

Valuation of issues is a complex process because the material may be issued out of various lots which might have been purchased at various prices. Following methods are used for this purpose:

Valuation of returns indicates the material returned by the production department to stores department. This valuation is done on two basis:


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