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Answer Posted / prasanta
According to AS-2 based on valuation of inventories.cost of
goods can be calculated in the following way.
Purchase price of goods
Add- Frieght,Import duties
Add-Any expenditure incurred to bring the goods into the
factory.
In other words cost of goods can be calculated as-:
The cost price of the goods or Net realise value which ever
is lower will be taken into account.
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