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how to value stock?
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Answer / bharathi
Valuation of Stock - Opening Stock Add: Purchase Less
Sales = Closing Stock (For Trading Company)
Valuation of Stock - Opening Stock of Raw Materials Add:
Purchase of Raw Materials Less: Consumption of Raw
Materials and Sales (if any) = Closing Stock (For
Manucaturing Company)
Opening Stock of Finished Goods Add: Production of Finished
Goods Less: Sales of Finished Goods = Closing Stock (For
Manufacturing Company) and also Value of Semi Finished
Goods to be included
Value of Stock to be valued at Market price or Actual cost
whichever is less
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