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Answer Posted / jagannath c v
Inventories are valued at the lower of costg, computed on
weighted average basis and estimated net realizable value.
Cost of work-in-process and finished goods includes
manufacturing overheads. The Company accrues for excise
duty liability in respect of manufactured finished goods
inventories lying in the factory and customs duty liability
in respect of inventories in bond. Net realizable value is
the estimated selling price in the ordinary course of
business, less estimted cost of completion and estimated
cost necessary to make the sale.
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